Correlation Between Amplify Thematic and John Hancock
Can any of the company-specific risk be diversified away by investing in both Amplify Thematic 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 Amplify Thematic and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Thematic All Stars and John Hancock Preferred, you can compare the effects of market volatilities on Amplify Thematic 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 Amplify Thematic with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Thematic and John Hancock.
Diversification Opportunities for Amplify Thematic and John Hancock
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amplify and John is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Thematic All Stars and John Hancock Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Preferred and Amplify Thematic 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 Amplify Thematic All Stars 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 Preferred has no effect on the direction of Amplify Thematic i.e., Amplify Thematic and John Hancock go up and down completely randomly.
Pair Corralation between Amplify Thematic and John Hancock
Given the investment horizon of 90 days Amplify Thematic All Stars is expected to generate 1.5 times more return on investment than John Hancock. However, Amplify Thematic is 1.5 times more volatile than John Hancock Preferred. It trades about 0.06 of its potential returns per unit of risk. John Hancock Preferred is currently generating about 0.06 per unit of risk. If you would invest 1,604 in Amplify Thematic All Stars on August 30, 2024 and sell it today you would earn a total of 807.00 from holding Amplify Thematic All Stars or generate 50.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amplify Thematic All Stars vs. John Hancock Preferred
Performance |
| Timeline |
| Amplify Thematic All |
| John Hancock Preferred |
Amplify Thematic and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Thematic and John Hancock
The main advantage of trading using opposite Amplify Thematic and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Thematic 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.| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
| John Hancock vs. Eaton Vance National | John Hancock vs. Invesco High Income | John Hancock vs. Blackrock Muniholdings Ny | John Hancock vs. Nuveen California Select |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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