Correlation Between Short Precious and John Hancock
Can any of the company-specific risk be diversified away by investing in both Short Precious 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 Short Precious and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Precious Metals and John Hancock Government, you can compare the effects of market volatilities on Short Precious 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 Short Precious with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Precious and John Hancock.
Diversification Opportunities for Short Precious and John Hancock
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Short and John is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Short Precious Metals and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Short Precious 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 Short Precious Metals 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 Government has no effect on the direction of Short Precious i.e., Short Precious and John Hancock go up and down completely randomly.
Pair Corralation between Short Precious and John Hancock
Assuming the 90 days horizon Short Precious Metals is expected to under-perform the John Hancock. In addition to that, Short Precious is 4.54 times more volatile than John Hancock Government. It trades about -0.02 of its total potential returns per unit of risk. John Hancock Government is currently generating about 0.02 per unit of volatility. If you would invest 759.00 in John Hancock Government on September 2, 2024 and sell it today you would earn a total of 27.00 from holding John Hancock Government or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Precious Metals vs. John Hancock Government
Performance |
| Timeline |
| Short Precious Metals |
| John Hancock Government |
Short Precious and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Precious and John Hancock
The main advantage of trading using opposite Short Precious and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Precious 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.| Short Precious vs. Ab Global Risk | Short Precious vs. Morgan Stanley Global | Short Precious vs. T Rowe Price | Short Precious vs. Pimco Global Multi Asset |
| John Hancock vs. Volumetric Fund Volumetric | John Hancock vs. Rbc Microcap Value | John Hancock vs. T Rowe Price | John Hancock vs. Falcon Focus Scv |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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