Correlation Between John Hancock and Aberdeen Global

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

By analyzing existing cross correlation between John Hancock Tax Advantaged and Aberdeen Global IF, you can compare the effects of market volatilities on John Hancock and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Aberdeen Global.

Diversification Opportunities for John Hancock and Aberdeen Global

0.08

Correlation Coefficient

John Hancock  Aberdeen Global

Significant diversification

The 3 months correlation between John and Aberdeen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Aberdeen Global IF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global IF 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 Tax Advantaged are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global IF has no effect on the direction of John Hancock i.e., John Hancock and Aberdeen Global go up and down completely randomly.

Pair Corralation between John Hancock and Aberdeen Global

If you would invest  560.00  in Aberdeen Global IF on September 1, 2024 and sell it today you would earn a total of  37.00  from holding Aberdeen Global IF or generate 6.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

John Hancock Tax Advantaged  vs.  Aberdeen Global IF

John Hancock Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Tax Advantaged has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Aberdeen Global IF

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Global IF are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Aberdeen Global may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with John Hancock and Aberdeen Global

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

The idea behind John Hancock Tax Advantaged and Aberdeen Global IF 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.