Correlation Between Pender Real and John Hancock
Can any of the company-specific risk be diversified away by investing in both Pender Real 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 Pender Real and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and John Hancock Variable, you can compare the effects of market volatilities on Pender Real 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 Pender Real with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and John Hancock.
Diversification Opportunities for Pender Real and John Hancock
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pender and John is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Pender Real 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 Pender Real Estate 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 Variable has no effect on the direction of Pender Real i.e., Pender Real and John Hancock go up and down completely randomly.
Pair Corralation between Pender Real and John Hancock
Assuming the 90 days horizon Pender Real Estate is expected to generate 0.05 times more return on investment than John Hancock. However, Pender Real Estate is 20.12 times less risky than John Hancock. It trades about 0.64 of its potential returns per unit of risk. John Hancock Variable is currently generating about -0.12 per unit of risk. If you would invest 990.00 in Pender Real Estate on November 27, 2024 and sell it today you would earn a total of 19.00 from holding Pender Real Estate or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pender Real Estate vs. John Hancock Variable
Performance |
| Timeline |
| Pender Real Estate |
| John Hancock Variable |
Pender Real and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and John Hancock
The main advantage of trading using opposite Pender Real and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real 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.| Pender Real vs. Old Westbury Municipal | Pender Real vs. Us Government Securities | Pender Real vs. T Rowe Price | Pender Real vs. Prudential California Muni |
| John Hancock vs. Manning Napier Diversified | John Hancock vs. Diversified Bond Fund | John Hancock vs. Guidepath Conservative Income | John Hancock vs. Prudential Core Conservative |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |