Correlation Between John Hancock and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both John Hancock and Fidelity Sai 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 John Hancock and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Fidelity Sai Short Term, you can compare the effects of market volatilities on John Hancock and Fidelity Sai 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 John Hancock with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Fidelity Sai.
Diversification Opportunities for John Hancock and Fidelity Sai
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Fidelity is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Fidelity Sai Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Short and John 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 John Hancock Financial are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Short has no effect on the direction of John Hancock i.e., John Hancock and Fidelity Sai go up and down completely randomly.
Pair Corralation between John Hancock and Fidelity Sai
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Fidelity Sai. In addition to that, John Hancock is 17.01 times more volatile than Fidelity Sai Short Term. It trades about -0.31 of its total potential returns per unit of risk. Fidelity Sai Short Term is currently generating about -0.18 per unit of volatility. If you would invest 970.00 in Fidelity Sai Short Term on September 26, 2024 and sell it today you would lose (3.00) from holding Fidelity Sai Short Term or give up 0.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Financial vs. Fidelity Sai Short Term
Performance |
Timeline |
John Hancock Financial |
Fidelity Sai Short |
John Hancock and Fidelity Sai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Fidelity Sai
The main advantage of trading using opposite John Hancock and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's long position.John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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