Correlation Between Distoken Acquisition and John Hancock

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

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

Diversification Opportunities for Distoken Acquisition and John Hancock

-0.3

Correlation Coefficient

Distoken Acquisition  John Hancock

Very good diversification

The 3 months correlation between Distoken and John is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Distoken Acquisition 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 Distoken Acquisition 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 Income has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and John Hancock go up and down completely randomly.

Pair Corralation between Distoken Acquisition and John Hancock

Given the investment horizon of 90 days Distoken Acquisition is expected to generate 0.25 times more return on investment than John Hancock. However, Distoken Acquisition is 3.92 times less risky than John Hancock. It trades about -0.22 of its potential returns per unit of risk. John Hancock Income is currently generating about -0.08 per unit of risk. If you would invest  1,120  in Distoken Acquisition on October 20, 2024 and sell it today you would lose (7.00) from holding Distoken Acquisition or give up 0.62% of portfolio value over 90 days.

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

Distoken Acquisition  vs.  John Hancock Income

Distoken Acquisition

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Distoken Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

John Hancock Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, John Hancock is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Distoken Acquisition and John Hancock

The main advantage of trading using opposite Distoken Acquisition and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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 Distoken Acquisition and John Hancock Income 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..