Correlation Between John Hancock and UBS
Can any of the company-specific risk be diversified away by investing in both John Hancock and UBS 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 John Hancock and UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Premium and UBS, you can compare the effects of market volatilities on John Hancock and UBS 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 John Hancock with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and UBS.
Diversification Opportunities for John Hancock and UBS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Premium and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS and John Hancock 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 John Hancock Premium are associated (or correlated) with UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of John Hancock i.e., John Hancock and UBS go up and down completely randomly.
Pair Corralation between John Hancock and UBS
If you would invest (100.00) in UBS on September 12, 2024 and sell it today you would earn a total of 100.00 from holding UBS or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
John Hancock Premium vs. UBS
Performance |
| Timeline |
| John Hancock Premium |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and UBS
The main advantage of trading using opposite John Hancock and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.| John Hancock vs. Brookfield Real Assets | John Hancock vs. Guggenheim Strategic Opportunities | John Hancock vs. Cornerstone Strategic Return | John Hancock vs. Cornerstone Strategic Value |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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