Correlation Between Fidelity® Government and John Hancock
Can any of the company-specific risk be diversified away by investing in both Fidelity® Government 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 Fidelity® Government and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Government Money and John Hancock Money, you can compare the effects of market volatilities on Fidelity® Government 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 Fidelity® Government with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity® Government and John Hancock.
Diversification Opportunities for Fidelity® Government and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity® and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Government Money and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Fidelity® Government 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 Fidelity Government Money 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 Money has no effect on the direction of Fidelity® Government i.e., Fidelity® Government and John Hancock go up and down completely randomly.
Pair Corralation between Fidelity® Government and John Hancock
If you would invest 95.00 in Fidelity Government Money on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Fidelity Government Money or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.45% |
| Values | Daily Returns |
Fidelity Government Money vs. John Hancock Money
Performance |
| Timeline |
| Fidelity Government Money |
| John Hancock Money |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity® Government and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity® Government and John Hancock
The main advantage of trading using opposite Fidelity® Government and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity® Government 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 Fidelity Government Money and John Hancock Money 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. Voya Government Money | John Hancock vs. Hsbc Government Money | John Hancock vs. Dws Government Money | John Hancock vs. Dreyfus Government Cash |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |