Correlation Between Queens Road and John Hancock
Can any of the company-specific risk be diversified away by investing in both Queens Road 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 Queens Road and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Queens Road Small and John Hancock Income, you can compare the effects of market volatilities on Queens Road 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 Queens Road with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Queens Road and John Hancock.
Diversification Opportunities for Queens Road and John Hancock
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Queens and John is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Small and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Queens Road 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 Queens Road Small 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 Income has no effect on the direction of Queens Road i.e., Queens Road and John Hancock go up and down completely randomly.
Pair Corralation between Queens Road and John Hancock
Assuming the 90 days horizon Queens Road Small is expected to generate 3.39 times more return on investment than John Hancock. However, Queens Road is 3.39 times more volatile than John Hancock Income. It trades about 0.06 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.07 per unit of risk. If you would invest 3,224 in Queens Road Small on September 13, 2024 and sell it today you would earn a total of 1,089 from holding Queens Road Small or generate 33.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Queens Road Small vs. John Hancock Income
Performance |
| Timeline |
| Queens Road Small |
| John Hancock Income |
Queens Road and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Queens Road and John Hancock
The main advantage of trading using opposite Queens Road and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Queens Road 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.| Queens Road vs. Pimco Corporate Income | Queens Road vs. Fpa Flexible Fixed | Queens Road vs. Fpa Queens Road | Queens Road vs. Fpa Queens Road |
| John Hancock vs. Queens Road Small | John Hancock vs. Valic Company I | John Hancock vs. Vanguard Small Cap Value | John Hancock vs. Royce Opportunity Fund |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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