Correlation Between Growth Fund and John Hancock
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and John Hancock High, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and John Hancock.
Diversification Opportunities for Growth Fund and John Hancock
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GROWTH and John is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and John Hancock High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock High and Growth Fund 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 Growth Fund Of 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 High has no effect on the direction of Growth Fund i.e., Growth Fund and John Hancock go up and down completely randomly.
Pair Corralation between Growth Fund and John Hancock
Assuming the 90 days horizon Growth Fund Of is expected to generate 2.38 times more return on investment than John Hancock. However, Growth Fund is 2.38 times more volatile than John Hancock High. It trades about 0.08 of its potential returns per unit of risk. John Hancock High is currently generating about 0.12 per unit of risk. If you would invest 6,663 in Growth Fund Of on October 23, 2024 and sell it today you would earn a total of 88.00 from holding Growth Fund Of or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. John Hancock High
Performance |
| Timeline |
| Growth Fund |
| John Hancock High |
Growth Fund and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and John Hancock
The main advantage of trading using opposite Growth Fund and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Capital World Growth | Growth Fund vs. Growth Fund Of | Growth Fund vs. Growth Fund Of |
| John Hancock vs. Growth Fund Of | John Hancock vs. Qs Large Cap | John Hancock vs. T Rowe Price | John Hancock vs. Ab Small Cap |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |