Correlation Between Jhancock Mgd and J Hancock

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

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

Diversification Opportunities for Jhancock Mgd and J Hancock

0.01

Correlation Coefficient

Jhancock Mgd  J Hancock

Significant diversification

The 3 months correlation between Jhancock and JRETX is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Mgd Acct 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 Jhancock Mgd 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 Jhancock Mgd Acct 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 Jhancock Mgd i.e., Jhancock Mgd and J Hancock go up and down completely randomly.

Pair Corralation between Jhancock Mgd and J Hancock

Assuming the 90 days horizon Jhancock Mgd Acct is expected to generate 0.28 times more return on investment than J Hancock. However, Jhancock Mgd Acct is 3.55 times less risky than J Hancock. It trades about 0.02 of its potential returns per unit of risk. J Hancock Ii is currently generating about -0.04 per unit of risk. If you would invest  1,006  in Jhancock Mgd Acct on December 27, 2024 and sell it today you would earn a total of  3.00  from holding Jhancock Mgd Acct or generate 0.3% return on investment over 90 days.

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

Jhancock Mgd Acct  vs.  J Hancock Ii

Jhancock Mgd Acct

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jhancock Mgd Acct are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Jhancock Mgd 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

Very Weak

Over the last 90 days J Hancock Ii has generated negative risk-adjusted returns adding no value to fund investors. 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 Jhancock Mgd and J Hancock

The main advantage of trading using opposite Jhancock Mgd and J Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Mgd 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 Jhancock Mgd Acct 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.