Correlation Between John Hancock and J Hancock

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

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

Diversification Opportunities for John Hancock and J Hancock

0.48

Correlation Coefficient

John Hancock  J Hancock

Very weak diversification

The 3 months correlation between John and JRETX is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and J Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Hancock Ii 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 Funds are associated (or correlated) with J Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Hancock Ii has no effect on the direction of John Hancock i.e., John Hancock and J Hancock go up and down completely randomly.

Pair Corralation between John Hancock and J Hancock

Assuming the 90 days horizon John Hancock is expected to generate 2.12 times less return on investment than J Hancock. But when comparing it to its historical volatility, John Hancock Funds is 1.68 times less risky than J Hancock. It trades about 0.07 of its potential returns per unit of risk. J Hancock Ii is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,032  in J Hancock Ii on September 19, 2024 and sell it today you would earn a total of  415.00  from holding J Hancock Ii or generate 40.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

John Hancock Funds  vs.  J Hancock Ii

John Hancock Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Funds 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 current stock price disturbance, may contribute to short-term losses for the investors.

J Hancock Ii

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in J Hancock Ii are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, J Hancock 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 J Hancock

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

The idea behind John Hancock Funds and J Hancock Ii 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.