Correlation Between John Hancock and Washington Mutual
Can any of the company-specific risk be diversified away by investing in both John Hancock and Washington Mutual 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 Washington Mutual 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 Washington Mutual Investors, you can compare the effects of market volatilities on John Hancock and Washington Mutual 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 Washington Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Washington Mutual.
Diversification Opportunities for John Hancock and Washington Mutual
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Washington is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual 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 Washington Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Mutual has no effect on the direction of John Hancock i.e., John Hancock and Washington Mutual go up and down completely randomly.
Pair Corralation between John Hancock and Washington Mutual
Assuming the 90 days horizon John Hancock is expected to generate 1.05 times less return on investment than Washington Mutual. In addition to that, John Hancock is 1.27 times more volatile than Washington Mutual Investors. It trades about 0.1 of its total potential returns per unit of risk. Washington Mutual Investors is currently generating about 0.13 per unit of volatility. If you would invest 5,850 in Washington Mutual Investors on August 29, 2024 and sell it today you would earn a total of 722.00 from holding Washington Mutual Investors or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Washington Mutual Investors
Performance |
| Timeline |
| John Hancock Disciplined |
| Washington Mutual |
John Hancock and Washington Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Washington Mutual
The main advantage of trading using opposite John Hancock and Washington Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Washington Mutual 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 Washington Mutual will offset losses from the drop in Washington Mutual'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 |
| Washington Mutual vs. Ambrus Core Bond | Washington Mutual vs. Multisector Bond Sma | Washington Mutual vs. T Rowe Price | Washington Mutual vs. Artisan High Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |