Correlation Between College Retirement and John Hancock
Can any of the company-specific risk be diversified away by investing in both College Retirement 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 College Retirement and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between College Retirement Equities and John Hancock Emerging, you can compare the effects of market volatilities on College Retirement 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 College Retirement with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of College Retirement and John Hancock.
Diversification Opportunities for College Retirement and John Hancock
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between College and John is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities and John Hancock Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Emerging and College Retirement 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 College Retirement Equities 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 Emerging has no effect on the direction of College Retirement i.e., College Retirement and John Hancock go up and down completely randomly.
Pair Corralation between College Retirement and John Hancock
Assuming the 90 days trading horizon College Retirement Equities is expected to generate 0.85 times more return on investment than John Hancock. However, College Retirement Equities is 1.17 times less risky than John Hancock. It trades about 0.1 of its potential returns per unit of risk. John Hancock Emerging is currently generating about -0.06 per unit of risk. If you would invest 34,512 in College Retirement Equities on November 6, 2024 and sell it today you would earn a total of 521.00 from holding College Retirement Equities or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
College Retirement Equities vs. John Hancock Emerging
Performance |
| Timeline |
| College Retirement |
| John Hancock Emerging |
College Retirement and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with College Retirement and John Hancock
The main advantage of trading using opposite College Retirement and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if College Retirement 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.| College Retirement vs. Mesirow Financial Small | College Retirement vs. Blackstone Secured Lending | College Retirement vs. Prudential Financial Services | College Retirement vs. John Hancock Financial |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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