Correlation Between Kinetics Market and John Hancock
Can any of the company-specific risk be diversified away by investing in both Kinetics Market 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 Kinetics Market and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Market Opportunities and John Hancock Disciplined, you can compare the effects of market volatilities on Kinetics Market 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 Kinetics Market with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and John Hancock.
Diversification Opportunities for Kinetics Market and John Hancock
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kinetics and John is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Kinetics Market 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 Kinetics Market Opportunities 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 Disciplined has no effect on the direction of Kinetics Market i.e., Kinetics Market and John Hancock go up and down completely randomly.
Pair Corralation between Kinetics Market and John Hancock
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.92 times more return on investment than John Hancock. However, Kinetics Market is 1.92 times more volatile than John Hancock Disciplined. It trades about 0.15 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.09 per unit of risk. If you would invest 3,485 in Kinetics Market Opportunities on September 12, 2024 and sell it today you would earn a total of 4,408 from holding Kinetics Market Opportunities or generate 126.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. John Hancock Disciplined
Performance |
| Timeline |
| Kinetics Market Oppo |
| John Hancock Disciplined |
Kinetics Market and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and John Hancock
The main advantage of trading using opposite Kinetics Market and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market 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.| Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. T Rowe Price | Kinetics Market vs. SCOR PK |
| John Hancock vs. Kinetics Market Opportunities | John Hancock vs. Siit Emerging Markets | John Hancock vs. Aqr Long Short Equity | John Hancock vs. Sp Midcap Index |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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