Correlation Between Stellar and John Hancock
Can any of the company-specific risk be diversified away by investing in both Stellar 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 Stellar and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar and John Hancock Global, you can compare the effects of market volatilities on Stellar 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 Stellar with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and John Hancock.
Diversification Opportunities for Stellar and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stellar and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Stellar 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 Stellar 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 Global has no effect on the direction of Stellar i.e., Stellar and John Hancock go up and down completely randomly.
Pair Corralation between Stellar and John Hancock
If you would invest 44.00 in Stellar on October 11, 2024 and sell it today you would lose (2.00) from holding Stellar or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Stellar vs. John Hancock Global
Performance |
| Timeline |
| Stellar |
| John Hancock Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stellar and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and John Hancock
The main advantage of trading using opposite Stellar and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar 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.The idea behind Stellar and John Hancock Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| John Hancock vs. Artisan High Income | John Hancock vs. Simt High Yield | John Hancock vs. Siit High Yield | John Hancock vs. Fidelity Capital Income |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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