Correlation Between Jpmorgan Equity and John Hancock
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Equity 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 Jpmorgan Equity and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Equity Income and John Hancock Bond, you can compare the effects of market volatilities on Jpmorgan Equity 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 Jpmorgan Equity with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Equity and John Hancock.
Diversification Opportunities for Jpmorgan Equity and John Hancock
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and John is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Equity Income and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Jpmorgan Equity 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 Jpmorgan Equity Income 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 Bond has no effect on the direction of Jpmorgan Equity i.e., Jpmorgan Equity and John Hancock go up and down completely randomly.
Pair Corralation between Jpmorgan Equity and John Hancock
Assuming the 90 days horizon Jpmorgan Equity Income is expected to generate 1.78 times more return on investment than John Hancock. However, Jpmorgan Equity is 1.78 times more volatile than John Hancock Bond. It trades about 0.15 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.07 per unit of risk. If you would invest 2,153 in Jpmorgan Equity Income on August 25, 2024 and sell it today you would earn a total of 575.00 from holding Jpmorgan Equity Income or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Equity Income vs. John Hancock Bond
Performance |
| Timeline |
| Jpmorgan Equity Income |
| John Hancock Bond |
Jpmorgan Equity and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Equity and John Hancock
The main advantage of trading using opposite Jpmorgan Equity and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Equity 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.| Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 | Jpmorgan Equity vs. Jpmorgan Smartretirement 2035 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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