Correlation Between John Hancock and Bitcoin Strategy

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

By analyzing existing cross correlation between John Hancock Variable and Bitcoin Strategy Profund, you can compare the effects of market volatilities on John Hancock and Bitcoin Strategy 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 Bitcoin Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Bitcoin Strategy.

Diversification Opportunities for John Hancock and Bitcoin Strategy

-0.25

Correlation Coefficient

John Hancock  Bitcoin Strategy

Very good diversification

The 3 months correlation between John and Bitcoin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Bitcoin Strategy Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Strategy Profund 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 Variable are associated (or correlated) with Bitcoin Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Strategy Profund has no effect on the direction of John Hancock i.e., John Hancock and Bitcoin Strategy go up and down completely randomly.

Pair Corralation between John Hancock and Bitcoin Strategy

Assuming the 90 days horizon John Hancock Variable is expected to under-perform the Bitcoin Strategy. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Variable is 3.64 times less risky than Bitcoin Strategy. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Bitcoin Strategy Profund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  2,192  in Bitcoin Strategy Profund on October 23, 2024 and sell it today you would earn a total of  1,210  from holding Bitcoin Strategy Profund or generate 55.2% return on investment over 90 days.

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

John Hancock Variable  vs.  Bitcoin Strategy Profund

John Hancock Variable

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bitcoin Strategy Profund

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Strategy Profund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Bitcoin Strategy showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with John Hancock and Bitcoin Strategy

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

The idea behind John Hancock Variable and Bitcoin Strategy Profund 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.