Correlation Between Jhancock Real and John Hancock
Can any of the company-specific risk be diversified away by investing in both Jhancock Real and John Hancock 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 Jhancock Real and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Real Estate and John Hancock Variable, you can compare the effects of market volatilities on Jhancock Real and John Hancock 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 Jhancock Real with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and John Hancock.
Diversification Opportunities for Jhancock Real and John Hancock
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jhancock and John is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Real Estate and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Jhancock Real 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 Jhancock Real Estate are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Variable has no effect on the direction of Jhancock Real i.e., Jhancock Real and John Hancock go up and down completely randomly.
Pair Corralation between Jhancock Real and John Hancock
Assuming the 90 days horizon Jhancock Real Estate is expected to generate 1.0 times more return on investment than John Hancock. However, Jhancock Real Estate is 1.0 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.11 per unit of risk. If you would invest 1,001 in Jhancock Real Estate on September 1, 2024 and sell it today you would earn a total of 366.00 from holding Jhancock Real Estate or generate 36.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Real Estate vs. John Hancock Variable
Performance |
| Timeline |
| Jhancock Real Estate |
| John Hancock Variable |
Jhancock Real and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Real and John Hancock
The main advantage of trading using opposite Jhancock Real and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Real position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Jhancock Real vs. Realty Income | Jhancock Real vs. Dynex Capital | Jhancock Real vs. First Industrial Realty | Jhancock Real vs. Healthcare Realty Trust |
| John Hancock vs. Pace Municipal Fixed | John Hancock vs. T Rowe Price | John Hancock vs. Old Westbury Municipal | John Hancock vs. T Rowe Price |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |