Correlation Between Portfolio and John Hancock
Can any of the company-specific risk be diversified away by investing in both Portfolio 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 Portfolio and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Portfolio 21 Global and John Hancock Esg, you can compare the effects of market volatilities on Portfolio 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 Portfolio with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Portfolio and John Hancock.
Diversification Opportunities for Portfolio and John Hancock
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Portfolio and John is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Portfolio 21 Global and John Hancock Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Esg and Portfolio 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 Portfolio 21 Global 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 Esg has no effect on the direction of Portfolio i.e., Portfolio and John Hancock go up and down completely randomly.
Pair Corralation between Portfolio and John Hancock
Assuming the 90 days horizon Portfolio is expected to generate 2.48 times less return on investment than John Hancock. In addition to that, Portfolio is 1.01 times more volatile than John Hancock Esg. It trades about 0.04 of its total potential returns per unit of risk. John Hancock Esg is currently generating about 0.11 per unit of volatility. If you would invest 1,930 in John Hancock Esg on September 2, 2024 and sell it today you would earn a total of 666.00 from holding John Hancock Esg or generate 34.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Portfolio 21 Global vs. John Hancock Esg
Performance |
| Timeline |
| Portfolio 21 Global |
| John Hancock Esg |
Portfolio and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Portfolio and John Hancock
The main advantage of trading using opposite Portfolio and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Portfolio 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.| Portfolio vs. New Alternatives Fund | Portfolio vs. Green Century Equity | Portfolio vs. Green Century Balanced | Portfolio vs. Neuberger Berman Socially |
| John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced | John Hancock vs. Multimanager Lifestyle Aggressive | John Hancock vs. Multimanager Lifestyle Servative |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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