Correlation Between John Hancock and Jpmorgan Value
Can any of the company-specific risk be diversified away by investing in both John Hancock and Jpmorgan Value 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 Jpmorgan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Bond and Jpmorgan Value Advantage, you can compare the effects of market volatilities on John Hancock and Jpmorgan Value 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 Jpmorgan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Jpmorgan Value.
Diversification Opportunities for John Hancock and Jpmorgan Value
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Jpmorgan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Bond and Jpmorgan Value Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Value Advantage 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 Bond are associated (or correlated) with Jpmorgan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Value Advantage has no effect on the direction of John Hancock i.e., John Hancock and Jpmorgan Value go up and down completely randomly.
Pair Corralation between John Hancock and Jpmorgan Value
Assuming the 90 days horizon John Hancock Bond is expected to under-perform the Jpmorgan Value. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Bond is 2.39 times less risky than Jpmorgan Value. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Jpmorgan Value Advantage is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,034 in Jpmorgan Value Advantage on September 12, 2024 and sell it today you would earn a total of 285.00 from holding Jpmorgan Value Advantage or generate 7.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
John Hancock Bond vs. Jpmorgan Value Advantage
Performance |
Timeline |
John Hancock Bond |
Jpmorgan Value Advantage |
John Hancock and Jpmorgan Value Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Jpmorgan Value
The main advantage of trading using opposite John Hancock and Jpmorgan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Jpmorgan Value 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 Jpmorgan Value will offset losses from the drop in Jpmorgan Value's long position.John Hancock vs. Touchstone Premium Yield | John Hancock vs. The National Tax Free | John Hancock vs. Alliancebernstein National Municipal | John Hancock vs. Dws Government Money |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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