Correlation Between John Hancock and Nuance Concentrated
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuance Concentrated at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining John Hancock and Nuance Concentrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Nuance Centrated Value, you can compare the effects of market volatilities on John Hancock and Nuance Concentrated and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in John Hancock with a short position of Nuance Concentrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuance Concentrated.
Diversification Opportunities for John Hancock and Nuance Concentrated
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Nuance is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Nuance Centrated Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuance Centrated Value and John Hancock is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on John Hancock Disciplined are associated (or correlated) with Nuance Concentrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuance Centrated Value has no effect on the direction of John Hancock i.e., John Hancock and Nuance Concentrated go up and down completely randomly.
Pair Corralation between John Hancock and Nuance Concentrated
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 1.08 times more return on investment than Nuance Concentrated. However, John Hancock is 1.08 times more volatile than Nuance Centrated Value. It trades about 0.11 of its potential returns per unit of risk. Nuance Centrated Value is currently generating about 0.07 per unit of risk. If you would invest 2,560 in John Hancock Disciplined on August 26, 2024 and sell it today you would earn a total of 665.00 from holding John Hancock Disciplined or generate 25.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Nuance Centrated Value
Performance |
| Timeline |
| John Hancock Disciplined |
| Nuance Centrated Value |
John Hancock and Nuance Concentrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuance Concentrated
The main advantage of trading using opposite John Hancock and Nuance Concentrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuance Concentrated can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nuance Concentrated will offset losses from the drop in Nuance Concentrated's long position.| John Hancock vs. New World Fund | John Hancock vs. Bond Fund Of | John Hancock vs. Washington Mutual Investors | John Hancock vs. Europacific Growth Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |