Correlation Between Upright Growth and John Hancock
Can any of the company-specific risk be diversified away by investing in both Upright Growth 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 Growth 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 Growth Income and John Hancock Financial, you can compare the effects of market volatilities on Upright Growth 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 Growth with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upright Growth and John Hancock.
Diversification Opportunities for Upright Growth and John Hancock
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Upright and John is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Income 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 Growth 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 Growth Income 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 Growth i.e., Upright Growth and John Hancock go up and down completely randomly.
Pair Corralation between Upright Growth and John Hancock
Assuming the 90 days horizon Upright Growth Income is expected to generate 0.89 times more return on investment than John Hancock. However, Upright Growth Income is 1.12 times less risky than John Hancock. It trades about 0.07 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 1,195 in Upright Growth Income on November 2, 2024 and sell it today you would earn a total of 818.00 from holding Upright Growth Income or generate 68.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Upright Growth Income vs. John Hancock Financial
Performance |
| Timeline |
| Upright Growth Income |
| John Hancock Financial |
Upright Growth and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upright Growth and John Hancock
The main advantage of trading using opposite Upright Growth and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Growth 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 Growth vs. Live Oak Health | Upright Growth vs. Blackrock Health Sciences | Upright Growth vs. Highland Longshort Healthcare | Upright Growth vs. Eaton Vance Worldwide |
| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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