Correlation Between SCOR PK and John Hancock
Can any of the company-specific risk be diversified away by investing in both SCOR PK 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 SCOR PK and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and John Hancock Investment, you can compare the effects of market volatilities on SCOR PK 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 SCOR PK with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and John Hancock.
Diversification Opportunities for SCOR PK and John Hancock
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCOR and John is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and John Hancock Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investment and SCOR PK 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 SCOR PK 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 Investment has no effect on the direction of SCOR PK i.e., SCOR PK and John Hancock go up and down completely randomly.
Pair Corralation between SCOR PK and John Hancock
Assuming the 90 days horizon SCOR PK is expected to generate 1.39 times less return on investment than John Hancock. In addition to that, SCOR PK is 7.22 times more volatile than John Hancock Investment. It trades about 0.0 of its total potential returns per unit of risk. John Hancock Investment is currently generating about 0.05 per unit of volatility. If you would invest 856.00 in John Hancock Investment on September 12, 2024 and sell it today you would earn a total of 59.00 from holding John Hancock Investment or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
SCOR PK vs. John Hancock Investment
Performance |
| Timeline |
| SCOR PK |
| John Hancock Investment |
SCOR PK and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and John Hancock
The main advantage of trading using opposite SCOR PK and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK 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.The idea behind SCOR PK and John Hancock Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| John Hancock vs. SCOR PK | John Hancock vs. Morningstar Unconstrained Allocation | John Hancock vs. Via Renewables | John Hancock vs. Bondbloxx ETF Trust |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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