Correlation Between Tiaa Cref and John Hancock
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref 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 Tiaa Cref and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Small Cap Equity and John Hancock Var, you can compare the effects of market volatilities on Tiaa Cref 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 Tiaa Cref with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and John Hancock.
Diversification Opportunities for Tiaa Cref and John Hancock
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tiaa and John is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Equity and John Hancock Var in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Var and Tiaa Cref 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 Tiaa Cref Small Cap 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 Var has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and John Hancock go up and down completely randomly.
Pair Corralation between Tiaa Cref and John Hancock
Assuming the 90 days horizon Tiaa Cref Small Cap Equity is expected to under-perform the John Hancock. In addition to that, Tiaa Cref is 2.52 times more volatile than John Hancock Var. It trades about -0.18 of its total potential returns per unit of risk. John Hancock Var is currently generating about -0.17 per unit of volatility. If you would invest 2,442 in John Hancock Var on September 13, 2024 and sell it today you would lose (93.00) from holding John Hancock Var or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Small Cap Equity vs. John Hancock Var
Performance |
| Timeline |
| Tiaa Cref Small |
| John Hancock Var |
Tiaa Cref and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and John Hancock
The main advantage of trading using opposite Tiaa Cref and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref 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.| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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