Correlation Between NYSE Composite and J Hancock
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and J 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 NYSE Composite and J Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and J Hancock Ii, you can compare the effects of market volatilities on NYSE Composite and J 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 NYSE Composite with a short position of J Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and J Hancock.
Diversification Opportunities for NYSE Composite and J Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and JGHTX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii and NYSE Composite 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 NYSE Composite are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of NYSE Composite i.e., NYSE Composite and J Hancock go up and down completely randomly.
Pair Corralation between NYSE Composite and J Hancock
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.96 times more return on investment than J Hancock. However, NYSE Composite is 1.04 times less risky than J Hancock. It trades about 0.23 of its potential returns per unit of risk. J Hancock Ii is currently generating about 0.15 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 66,978 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. J Hancock Ii
Performance |
| Timeline |
NYSE Composite and J Hancock Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
J Hancock Ii
Pair trading matchups for J Hancock
Pair Trading with NYSE Composite and J Hancock
The main advantage of trading using opposite NYSE Composite and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, J 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 J Hancock will offset losses from the drop in J Hancock's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| J Hancock vs. Barings Global Floating | J Hancock vs. Commonwealth Global Fund | J Hancock vs. Power Global Tactical | J Hancock vs. Scharf Global Opportunity |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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