Correlation Between Astar and John Hancock

Can any of the company-specific risk be diversified away by investing in both Astar 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 Astar and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astar and John Hancock Exchange Traded, you can compare the effects of market volatilities on Astar 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 Astar with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and John Hancock.

Diversification Opportunities for Astar and John Hancock

0.27

Correlation Coefficient

Astar  John Hancock

Modest diversification

The 3 months correlation between Astar and John is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Astar and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and Astar 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 Astar 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 Exchange has no effect on the direction of Astar i.e., Astar and John Hancock go up and down completely randomly.

Pair Corralation between Astar and John Hancock

Assuming the 90 days trading horizon Astar is expected to generate 19.49 times more return on investment than John Hancock. However, Astar is 19.49 times more volatile than John Hancock Exchange Traded. It trades about 0.04 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.04 per unit of risk. If you would invest  4.70  in Astar on October 11, 2024 and sell it today you would earn a total of  1.42  from holding Astar or generate 30.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	60.0%
Values	Daily Returns

Astar  vs.  John Hancock Exchange Traded

Astar

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Astar are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Astar may actually be approaching a critical reversion point that can send shares even higher in February 2025.

John Hancock Exchange

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Astar and John Hancock

The main advantage of trading using opposite Astar and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar 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 Astar and John Hancock Exchange Traded 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.