Correlation Between Oppenheimer Intl and John Hancock
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Intl 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 Oppenheimer Intl and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Intl Grwth and John Hancock Financial, you can compare the effects of market volatilities on Oppenheimer Intl 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 Oppenheimer Intl with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Intl and John Hancock.
Diversification Opportunities for Oppenheimer Intl and John Hancock
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oppenheimer and John is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Intl Grwth 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 Oppenheimer Intl 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 Oppenheimer Intl Grwth 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 Oppenheimer Intl i.e., Oppenheimer Intl and John Hancock go up and down completely randomly.
Pair Corralation between Oppenheimer Intl and John Hancock
Assuming the 90 days horizon Oppenheimer Intl Grwth is expected to under-perform the John Hancock. In addition to that, Oppenheimer Intl is 2.53 times more volatile than John Hancock Financial. It trades about -0.16 of its total potential returns per unit of risk. John Hancock Financial is currently generating about -0.06 per unit of volatility. If you would invest 3,813 in John Hancock Financial on September 14, 2024 and sell it today you would lose (51.00) from holding John Hancock Financial or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oppenheimer Intl Grwth vs. John Hancock Financial
Performance |
| Timeline |
| Oppenheimer Intl Grwth |
| John Hancock Financial |
Oppenheimer Intl and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Intl and John Hancock
The main advantage of trading using opposite Oppenheimer Intl and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Intl 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.| Oppenheimer Intl vs. John Hancock Financial | Oppenheimer Intl vs. Blackrock Financial Institutions | Oppenheimer Intl vs. Icon Financial Fund | Oppenheimer Intl vs. Transamerica Financial Life |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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