Correlation Between Pace Smallmedium and John Hancock
Can any of the company-specific risk be diversified away by investing in both Pace Smallmedium 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 Pace Smallmedium and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Smallmedium Value and John Hancock Ii, you can compare the effects of market volatilities on Pace Smallmedium 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 Pace Smallmedium with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Smallmedium and John Hancock.
Diversification Opportunities for Pace Smallmedium and John Hancock
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pace and John is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pace Smallmedium Value and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Pace Smallmedium 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 Pace Smallmedium Value 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 Ii has no effect on the direction of Pace Smallmedium i.e., Pace Smallmedium and John Hancock go up and down completely randomly.
Pair Corralation between Pace Smallmedium and John Hancock
Assuming the 90 days horizon Pace Smallmedium Value is expected to generate 0.83 times more return on investment than John Hancock. However, Pace Smallmedium Value is 1.2 times less risky than John Hancock. It trades about 0.08 of its potential returns per unit of risk. John Hancock Ii is currently generating about 0.04 per unit of risk. If you would invest 1,747 in Pace Smallmedium Value on September 14, 2024 and sell it today you would earn a total of 392.00 from holding Pace Smallmedium Value or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Pace Smallmedium Value vs. John Hancock Ii
Performance |
| Timeline |
| Pace Smallmedium Value |
| John Hancock Ii |
Pace Smallmedium and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Smallmedium and John Hancock
The main advantage of trading using opposite Pace Smallmedium and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Smallmedium 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.| Pace Smallmedium vs. Wilmington Trust Retirement | Pace Smallmedium vs. Qs Moderate Growth | Pace Smallmedium vs. Jpmorgan Smartretirement 2035 | Pace Smallmedium vs. Jp Morgan Smartretirement |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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