Correlation Between Sprott Gold and John Hancock
Can any of the company-specific risk be diversified away by investing in both Sprott Gold 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 Sprott Gold and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Gold Equity and John Hancock Investment, you can compare the effects of market volatilities on Sprott Gold 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 Sprott Gold with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and John Hancock.
Diversification Opportunities for Sprott Gold and John Hancock
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sprott and John is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity 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 Sprott Gold 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 Sprott Gold Equity 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 Sprott Gold i.e., Sprott Gold and John Hancock go up and down completely randomly.
Pair Corralation between Sprott Gold and John Hancock
Assuming the 90 days horizon Sprott Gold Equity is expected to generate 3.94 times more return on investment than John Hancock. However, Sprott Gold is 3.94 times more volatile than John Hancock Investment. It trades about 0.06 of its potential returns per unit of risk. John Hancock Investment is currently generating about 0.04 per unit of risk. If you would invest 4,261 in Sprott Gold Equity on September 12, 2024 and sell it today you would earn a total of 1,398 from holding Sprott Gold Equity or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sprott Gold Equity vs. John Hancock Investment
Performance |
| Timeline |
| Sprott Gold Equity |
| John Hancock Investment |
Sprott Gold and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sprott Gold and John Hancock
The main advantage of trading using opposite Sprott Gold and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Gold 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.| Sprott Gold vs. Sprott Junior Gold | Sprott Gold vs. Sprott Gold Miners | Sprott Gold vs. Europac Gold Fund | Sprott Gold vs. US Global GO |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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