Correlation Between Real Estate and John Hancock
Can any of the company-specific risk be diversified away by investing in both Real Estate 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 Real Estate and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate Securities and John Hancock Money, you can compare the effects of market volatilities on Real Estate 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 Real Estate with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and John Hancock.
Diversification Opportunities for Real Estate and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Real and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Securities and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Real Estate 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 Real Estate Securities 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 Money has no effect on the direction of Real Estate i.e., Real Estate and John Hancock go up and down completely randomly.
Pair Corralation between Real Estate and John Hancock
If you would invest 100.00 in John Hancock Money on August 30, 2024 and sell it today you would earn a total of 0.00 from holding John Hancock Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Real Estate Securities vs. John Hancock Money
Performance |
| Timeline |
| Real Estate Securities |
| John Hancock Money |
Real Estate and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and John Hancock
The main advantage of trading using opposite Real Estate and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate 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.| Real Estate vs. Realty Income | Real Estate vs. Dynex Capital | Real Estate vs. First Industrial Realty | Real Estate vs. Healthcare Realty Trust |
| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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