Correlation Between Upright Assets and John Hancock
Can any of the company-specific risk be diversified away by investing in both Upright Assets 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 Upright Assets and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upright Assets Allocation and John Hancock Financial, you can compare the effects of market volatilities on Upright Assets 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 Upright Assets with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upright Assets and John Hancock.
Diversification Opportunities for Upright Assets and John Hancock
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Upright and John is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Upright Assets Allocation and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Upright Assets 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 Upright Assets Allocation 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 Financial has no effect on the direction of Upright Assets i.e., Upright Assets and John Hancock go up and down completely randomly.
Pair Corralation between Upright Assets and John Hancock
Assuming the 90 days horizon Upright Assets Allocation is expected to generate 0.94 times more return on investment than John Hancock. However, Upright Assets Allocation is 1.07 times less risky than John Hancock. It trades about 0.05 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.03 per unit of risk. If you would invest 1,057 in Upright Assets Allocation on November 2, 2024 and sell it today you would earn a total of 436.00 from holding Upright Assets Allocation or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Upright Assets Allocation vs. John Hancock Financial
Performance |
| Timeline |
| Upright Assets Allocation |
| John Hancock Financial |
Upright Assets and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upright Assets and John Hancock
The main advantage of trading using opposite Upright Assets and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Assets 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.| Upright Assets vs. Short Duration Inflation | Upright Assets vs. Ab Bond Inflation | Upright Assets vs. Ab Bond Inflation | Upright Assets vs. Credit Suisse Multialternative |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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