Correlation Between HANCOCK and 00108WAF7
Specify exactly 2 symbols:
By analyzing existing cross correlation between HANCOCK JOHN LIFE and AEP TEX INC, you can compare the effects of market volatilities on HANCOCK and 00108WAF7 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 HANCOCK with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANCOCK and 00108WAF7.
Diversification Opportunities for HANCOCK and 00108WAF7
Very good diversification
The 3 months correlation between HANCOCK and 00108WAF7 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HANCOCK JOHN LIFE and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and HANCOCK 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 HANCOCK JOHN LIFE are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of HANCOCK i.e., HANCOCK and 00108WAF7 go up and down completely randomly.
Pair Corralation between HANCOCK and 00108WAF7
Assuming the 90 days trading horizon HANCOCK is expected to generate 800.95 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, HANCOCK JOHN LIFE is 80.75 times less risky than 00108WAF7. It trades about 0.01 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 7,507 in AEP TEX INC on September 12, 2024 and sell it today you would earn a total of 161.00 from holding AEP TEX INC or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.17% |
| Values | Daily Returns |
HANCOCK JOHN LIFE vs. AEP TEX INC
Performance |
| Timeline |
| HANCOCK JOHN LIFE |
| AEP TEX INC |
HANCOCK and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANCOCK and 00108WAF7
The main advantage of trading using opposite HANCOCK and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANCOCK position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| HANCOCK vs. Centessa Pharmaceuticals PLC | HANCOCK vs. Lion One Metals | HANCOCK vs. Perseus Mining Limited | HANCOCK vs. Valneva SE ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |