Correlation Between John Hancock and Oppenheimer Steelpath

Can any of the company-specific risk be diversified away by investing in both John Hancock and Oppenheimer Steelpath 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 Oppenheimer Steelpath 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 Oppenheimer Steelpath Mlp, you can compare the effects of market volatilities on John Hancock and Oppenheimer Steelpath 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 Oppenheimer Steelpath. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Oppenheimer Steelpath.

Diversification Opportunities for John Hancock and Oppenheimer Steelpath

0.86

Correlation Coefficient

John Hancock  Oppenheimer Steelpath

Very poor diversification

The 3 months correlation between John and Oppenheimer is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Oppenheimer Steelpath Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Steelpath Mlp 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 Oppenheimer Steelpath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Steelpath Mlp has no effect on the direction of John Hancock i.e., John Hancock and Oppenheimer Steelpath go up and down completely randomly.

Pair Corralation between John Hancock and Oppenheimer Steelpath

Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Oppenheimer Steelpath. But the fund apears to be less risky and, when comparing its historical volatility, John Hancock Financial is 1.05 times less risky than Oppenheimer Steelpath. The fund trades about -0.03 of its potential returns per unit of risk. The Oppenheimer Steelpath Mlp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  643.00  in Oppenheimer Steelpath Mlp on September 18, 2024 and sell it today you would earn a total of  9.00  from holding Oppenheimer Steelpath Mlp or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

John Hancock Financial  vs.  Oppenheimer Steelpath Mlp

John Hancock Financial

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Financial are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of very conflicting basic indicators, John Hancock displayed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Steelpath Mlp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Steelpath Mlp are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Oppenheimer Steelpath is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with John Hancock and Oppenheimer Steelpath

The main advantage of trading using opposite John Hancock and Oppenheimer Steelpath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Oppenheimer Steelpath 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 Oppenheimer Steelpath will offset losses from the drop in Oppenheimer Steelpath's long position.

The idea behind John Hancock Financial and Oppenheimer Steelpath Mlp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.