Correlation Between Nasdaq-100 Index and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Index 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 Nasdaq-100 Index and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and John Hancock Enduring, you can compare the effects of market volatilities on Nasdaq-100 Index 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 Nasdaq-100 Index with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Index and John Hancock.
Diversification Opportunities for Nasdaq-100 Index and John Hancock
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nasdaq-100 and John is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring and Nasdaq-100 Index 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 Nasdaq 100 Index Fund 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 Enduring has no effect on the direction of Nasdaq-100 Index i.e., Nasdaq-100 Index and John Hancock go up and down completely randomly.
Pair Corralation between Nasdaq-100 Index and John Hancock
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.87 times more return on investment than John Hancock. However, Nasdaq-100 Index is 1.87 times more volatile than John Hancock Enduring. It trades about 0.06 of its potential returns per unit of risk. John Hancock Enduring is currently generating about 0.08 per unit of risk. If you would invest 4,641 in Nasdaq 100 Index Fund on November 28, 2024 and sell it today you would earn a total of 550.00 from holding Nasdaq 100 Index Fund or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. John Hancock Enduring
Performance |
| Timeline |
| Nasdaq 100 Index |
| John Hancock Enduring |
Nasdaq-100 Index and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Index and John Hancock
The main advantage of trading using opposite Nasdaq-100 Index and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Index 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.| Nasdaq-100 Index vs. Intermediate Bond Fund | Nasdaq-100 Index vs. Doubleline Total Return | Nasdaq-100 Index vs. Multisector Bond Sma | Nasdaq-100 Index vs. Bbh Intermediate Municipal |
| John Hancock vs. Redwood Real Estate | John Hancock vs. Global Real Estate | John Hancock vs. Fidelity Real Estate | John Hancock vs. Nexpoint Real Estate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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