Correlation Between Victory Sycamore and John Hancock
Can any of the company-specific risk be diversified away by investing in both Victory Sycamore 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 Victory Sycamore and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Sycamore Small and John Hancock Bond, you can compare the effects of market volatilities on Victory Sycamore 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 Victory Sycamore with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Sycamore and John Hancock.
Diversification Opportunities for Victory Sycamore and John Hancock
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Victory and John is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Victory Sycamore Small and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Victory Sycamore 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 Victory Sycamore Small 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 Bond has no effect on the direction of Victory Sycamore i.e., Victory Sycamore and John Hancock go up and down completely randomly.
Pair Corralation between Victory Sycamore and John Hancock
Assuming the 90 days horizon Victory Sycamore Small is expected to generate 4.21 times more return on investment than John Hancock. However, Victory Sycamore is 4.21 times more volatile than John Hancock Bond. It trades about 0.3 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.12 per unit of risk. If you would invest 5,012 in Victory Sycamore Small on September 1, 2024 and sell it today you would earn a total of 513.00 from holding Victory Sycamore Small or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Victory Sycamore Small vs. John Hancock Bond
Performance |
| Timeline |
| Victory Sycamore Small |
| John Hancock Bond |
Victory Sycamore and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Sycamore and John Hancock
The main advantage of trading using opposite Victory Sycamore and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Sycamore 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.| Victory Sycamore vs. Victory Rs International | Victory Sycamore vs. Victory High Yield | Victory Sycamore vs. Victory Sycamore Established | Victory Sycamore vs. Victory Integrity Discovery |
| John Hancock vs. John Hancock Disciplined | John Hancock vs. John Hancock Global | John Hancock vs. Aquagold International | John Hancock vs. Thrivent High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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