Correlation Between Mexico Closed and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mexico Closed 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 Mexico Closed and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mexico Closed and John Hancock Financial, you can compare the effects of market volatilities on Mexico Closed 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 Mexico Closed with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mexico Closed and John Hancock.
Diversification Opportunities for Mexico Closed and John Hancock
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mexico and John is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mexico Closed and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Mexico Closed 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 Mexico Closed 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 Financial has no effect on the direction of Mexico Closed i.e., Mexico Closed and John Hancock go up and down completely randomly.
Pair Corralation between Mexico Closed and John Hancock
Considering the 90-day investment horizon Mexico Closed is expected to under-perform the John Hancock. But the fund apears to be less risky and, when comparing its historical volatility, Mexico Closed is 1.88 times less risky than John Hancock. The fund trades about -0.24 of its potential returns per unit of risk. The John Hancock Financial is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 3,409 in John Hancock Financial on August 28, 2024 and sell it today you would earn a total of 536.00 from holding John Hancock Financial or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mexico Closed vs. John Hancock Financial
Performance |
| Timeline |
| Mexico Closed |
| John Hancock Financial |
Mexico Closed and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mexico Closed and John Hancock
The main advantage of trading using opposite Mexico Closed and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mexico Closed 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.| Mexico Closed vs. Blackrock Muniyield Pennsylvania | Mexico Closed vs. Pimco New York | Mexico Closed vs. First Trust Specialty | Mexico Closed vs. Swiss Helvetia Closed |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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