Correlation Between Mid Cap and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and John Hancock Disciplined, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and John Hancock.
Diversification Opportunities for Mid Cap and John Hancock
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mid and John is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth 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 Mid Cap 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 Mid Cap Growth 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 Mid Cap i.e., Mid Cap and John Hancock go up and down completely randomly.
Pair Corralation between Mid Cap and John Hancock
Assuming the 90 days horizon Mid Cap Growth is expected to generate 1.06 times more return on investment than John Hancock. However, Mid Cap is 1.06 times more volatile than John Hancock Disciplined. It trades about 0.05 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about -0.05 per unit of risk. If you would invest 3,785 in Mid Cap Growth on November 28, 2024 and sell it today you would earn a total of 274.00 from holding Mid Cap Growth or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Growth vs. John Hancock Disciplined
Performance |
| Timeline |
| Mid Cap Growth |
| John Hancock Disciplined |
Mid Cap and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and John Hancock
The main advantage of trading using opposite Mid Cap and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Wasatch Small Cap | Mid Cap vs. Victory Trivalent International | Mid Cap vs. John Hancock Disciplined | Mid Cap vs. Mfs Mid Cap |
| John Hancock vs. Morgan Stanley Institutional | John Hancock vs. Tfa Alphagen Growth | John Hancock vs. T Rowe Price | John Hancock vs. Ab Centrated International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |