Correlation Between John Hancock and Ivy Emerging
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ivy Emerging 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 Ivy Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Emerging and Ivy Emerging Markets, you can compare the effects of market volatilities on John Hancock and Ivy Emerging 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 Ivy Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ivy Emerging.
Diversification Opportunities for John Hancock and Ivy Emerging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Ivy is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Emerging and Ivy Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Emerging Markets 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 Emerging are associated (or correlated) with Ivy Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Emerging Markets has no effect on the direction of John Hancock i.e., John Hancock and Ivy Emerging go up and down completely randomly.
Pair Corralation between John Hancock and Ivy Emerging
Assuming the 90 days horizon John Hancock is expected to generate 2.13 times less return on investment than Ivy Emerging. In addition to that, John Hancock is 1.13 times more volatile than Ivy Emerging Markets. It trades about 0.02 of its total potential returns per unit of risk. Ivy Emerging Markets is currently generating about 0.06 per unit of volatility. If you would invest 1,897 in Ivy Emerging Markets on December 18, 2024 and sell it today you would earn a total of 56.00 from holding Ivy Emerging Markets or generate 2.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Emerging vs. Ivy Emerging Markets
Performance |
Timeline |
John Hancock Emerging |
Ivy Emerging Markets |
John Hancock and Ivy Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Ivy Emerging
The main advantage of trading using opposite John Hancock and Ivy Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ivy Emerging 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 Ivy Emerging will offset losses from the drop in Ivy Emerging's long position.John Hancock vs. Goldman Sachs Technology | John Hancock vs. Firsthand Technology Opportunities | John Hancock vs. Vanguard Information Technology | John Hancock vs. Dreyfus Technology Growth |
Ivy Emerging vs. Transamerica Large Cap | Ivy Emerging vs. American Mutual Fund | Ivy Emerging vs. Avantis Large Cap | Ivy Emerging vs. Wasatch Large Cap |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |