Correlation Between Arrow Managed and John Hancock
Can any of the company-specific risk be diversified away by investing in both Arrow Managed 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 Arrow Managed and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and John Hancock Ii, you can compare the effects of market volatilities on Arrow Managed 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 Arrow Managed with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and John Hancock.
Diversification Opportunities for Arrow Managed and John Hancock
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and John is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Arrow Managed 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 Arrow Managed Futures 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 Ii has no effect on the direction of Arrow Managed i.e., Arrow Managed and John Hancock go up and down completely randomly.
Pair Corralation between Arrow Managed and John Hancock
Assuming the 90 days horizon Arrow Managed Futures is expected to generate 1.23 times more return on investment than John Hancock. However, Arrow Managed is 1.23 times more volatile than John Hancock Ii. It trades about 0.01 of its potential returns per unit of risk. John Hancock Ii is currently generating about -0.01 per unit of risk. If you would invest 554.00 in Arrow Managed Futures on October 25, 2024 and sell it today you would earn a total of 26.00 from holding Arrow Managed Futures or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Arrow Managed Futures vs. John Hancock Ii
Performance |
| Timeline |
| Arrow Managed Futures |
| John Hancock Ii |
Arrow Managed and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and John Hancock
The main advantage of trading using opposite Arrow Managed and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed 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.| Arrow Managed vs. Commonwealth Real Estate | Arrow Managed vs. Forum Real Estate | Arrow Managed vs. Columbia Real Estate | Arrow Managed vs. Jhancock Real Estate |
| John Hancock vs. Ab Discovery Growth | John Hancock vs. Ab International Value | John Hancock vs. Small Cap Core | John Hancock vs. Ab International Growth |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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