Correlation Between Mesirow Financial and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial 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 Mesirow Financial and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial Small and John Hancock Global, you can compare the effects of market volatilities on Mesirow Financial 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 Mesirow Financial with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and John Hancock.
Diversification Opportunities for Mesirow Financial and John Hancock
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mesirow and John is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Mesirow Financial 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 Mesirow Financial Small 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 Global has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and John Hancock go up and down completely randomly.
Pair Corralation between Mesirow Financial and John Hancock
Assuming the 90 days horizon Mesirow Financial Small is expected to generate 1.74 times more return on investment than John Hancock. However, Mesirow Financial is 1.74 times more volatile than John Hancock Global. It trades about 0.05 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.09 per unit of risk. If you would invest 1,092 in Mesirow Financial Small on September 13, 2024 and sell it today you would earn a total of 341.00 from holding Mesirow Financial Small or generate 31.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. John Hancock Global
Performance |
| Timeline |
| Mesirow Financial Small |
| John Hancock Global |
Mesirow Financial and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and John Hancock
The main advantage of trading using opposite Mesirow Financial and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial 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.| Mesirow Financial vs. Old Westbury Large | Mesirow Financial vs. Aqr Large Cap | Mesirow Financial vs. Morningstar Unconstrained Allocation | Mesirow Financial vs. T Rowe Price |
| John Hancock vs. Royce Global Financial | John Hancock vs. John Hancock Financial | John Hancock vs. Blackrock Financial Institutions | John Hancock vs. Mesirow Financial Small |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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