Correlation Between Scharf Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Scharf Global 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 Scharf Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scharf Global Opportunity and John Hancock Enduring, you can compare the effects of market volatilities on Scharf Global 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 Scharf Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scharf Global and John Hancock.
Diversification Opportunities for Scharf Global and John Hancock
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Scharf and John is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Scharf Global Opportunity 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 Scharf Global 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 Scharf Global Opportunity 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 Scharf Global i.e., Scharf Global and John Hancock go up and down completely randomly.
Pair Corralation between Scharf Global and John Hancock
Assuming the 90 days horizon Scharf Global Opportunity is expected to generate 0.93 times more return on investment than John Hancock. However, Scharf Global Opportunity is 1.08 times less risky than John Hancock. It trades about 0.37 of its potential returns per unit of risk. John Hancock Enduring is currently generating about 0.22 per unit of risk. If you would invest 3,642 in Scharf Global Opportunity on September 4, 2024 and sell it today you would earn a total of 172.00 from holding Scharf Global Opportunity or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scharf Global Opportunity vs. John Hancock Enduring
Performance |
| Timeline |
| Scharf Global Opportunity |
| John Hancock Enduring |
Scharf Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scharf Global and John Hancock
The main advantage of trading using opposite Scharf Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scharf Global 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.| Scharf Global vs. The Hartford Emerging | Scharf Global vs. Locorr Market Trend | Scharf Global vs. Ep Emerging Markets | Scharf Global vs. Morgan Stanley Emerging |
| John Hancock vs. Versatile Bond Portfolio | John Hancock vs. Gmo High Yield | John Hancock vs. Blrc Sgy Mnp | John Hancock vs. T Rowe Price |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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