Correlation Between Nasdaq 100 and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 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 Strategic, you can compare the effects of market volatilities on Nasdaq 100 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 with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and John Hancock.
Diversification Opportunities for Nasdaq 100 and John Hancock
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nasdaq and John is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Nasdaq 100 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 Strategic has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and John Hancock go up and down completely randomly.
Pair Corralation between Nasdaq 100 and John Hancock
Assuming the 90 days horizon Nasdaq 100 is expected to generate 3.37 times less return on investment than John Hancock. In addition to that, Nasdaq 100 is 1.1 times more volatile than John Hancock Strategic. It trades about 0.02 of its total potential returns per unit of risk. John Hancock Strategic is currently generating about 0.07 per unit of volatility. If you would invest 2,755 in John Hancock Strategic on October 25, 2024 and sell it today you would earn a total of 35.00 from holding John Hancock Strategic or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. John Hancock Strategic
Performance |
| Timeline |
| Nasdaq 100 Index |
| John Hancock Strategic |
Nasdaq 100 and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and John Hancock
The main advantage of trading using opposite Nasdaq 100 and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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 vs. Global Gold Fund | Nasdaq 100 vs. First Eagle Gold | Nasdaq 100 vs. Oppenheimer Gold Special | Nasdaq 100 vs. Short Precious Metals |
| John Hancock vs. Nasdaq 100 Index Fund | John Hancock vs. Qs Small Capitalization | John Hancock vs. Growth Fund Of | John Hancock vs. Rbb Fund |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |