Correlation Between Touchstone International and John Hancock
Can any of the company-specific risk be diversified away by investing in both Touchstone International 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 Touchstone International and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone International Small and John Hancock Funds, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and John Hancock.
Diversification Opportunities for Touchstone International and John Hancock
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Touchstone and John is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Small and John Hancock Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Funds and Touchstone International 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 Touchstone International Small 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 Funds has no effect on the direction of Touchstone International i.e., Touchstone International and John Hancock go up and down completely randomly.
Pair Corralation between Touchstone International and John Hancock
Assuming the 90 days horizon Touchstone International Small is expected to generate 2.08 times more return on investment than John Hancock. However, Touchstone International is 2.08 times more volatile than John Hancock Funds. It trades about 0.12 of its potential returns per unit of risk. John Hancock Funds is currently generating about 0.15 per unit of risk. If you would invest 1,014 in Touchstone International Small on September 4, 2024 and sell it today you would earn a total of 272.00 from holding Touchstone International Small or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.97% |
| Values | Daily Returns |
Touchstone International Small vs. John Hancock Funds
Performance |
| Timeline |
| Touchstone International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Funds |
Touchstone International and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone International and John Hancock
The main advantage of trading using opposite Touchstone International and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.| Touchstone International vs. Touchstone Sands Capital | Touchstone International vs. Mid Cap Growth | Touchstone International vs. Mid Cap Growth | Touchstone International vs. Sentinel Small Pany |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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