Correlation Between Sp Midcap and John Hancock
Can any of the company-specific risk be diversified away by investing in both Sp Midcap 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 Sp Midcap and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Midcap Index and John Hancock Disciplined, you can compare the effects of market volatilities on Sp Midcap 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 Sp Midcap with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Midcap and John Hancock.
Diversification Opportunities for Sp Midcap and John Hancock
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPMIX and John is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sp Midcap Index and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Sp Midcap 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 Sp Midcap Index 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 Disciplined has no effect on the direction of Sp Midcap i.e., Sp Midcap and John Hancock go up and down completely randomly.
Pair Corralation between Sp Midcap and John Hancock
Assuming the 90 days horizon Sp Midcap is expected to generate 1.86 times less return on investment than John Hancock. In addition to that, Sp Midcap is 1.53 times more volatile than John Hancock Disciplined. It trades about 0.03 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.09 per unit of volatility. If you would invest 2,548 in John Hancock Disciplined on September 13, 2024 and sell it today you would earn a total of 238.00 from holding John Hancock Disciplined or generate 9.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sp Midcap Index vs. John Hancock Disciplined
Performance |
Timeline |
Sp Midcap Index |
John Hancock Disciplined |
Sp Midcap and John Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sp Midcap and John Hancock
The main advantage of trading using opposite Sp Midcap and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Midcap 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.Sp Midcap vs. Shelton Emerging Markets | Sp Midcap vs. Shelton Emerging Markets | Sp Midcap vs. Shelton Funds | Sp Midcap vs. Nasdaq 100 Index Fund |
John Hancock vs. Putnam Convertible Incm Gwth | John Hancock vs. Calamos Dynamic Convertible | John Hancock vs. Fidelity Sai Convertible | John Hancock vs. Lord Abbett Convertible |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |