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 Ii, 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
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Queens and John is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Small and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii 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 Ii 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 under-perform the John Hancock. In addition to that, Queens Road is 1.24 times more volatile than John Hancock Ii. It trades about -0.08 of its total potential returns per unit of risk. John Hancock Ii is currently generating about 0.07 per unit of volatility. If you would invest 1,895 in John Hancock Ii on September 20, 2024 and sell it today you would earn a total of 21.00 from holding John Hancock Ii or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Queens Road Small vs. John Hancock Ii
Performance |
| Timeline |
| Queens Road Small |
| John Hancock Ii |
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. Materials Portfolio Fidelity | Queens Road vs. Falcon Focus Scv | Queens Road vs. Rbb Fund | Queens Road vs. Acm Dynamic Opportunity |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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