Correlation Between J Hancock and Lifestyle
Can any of the company-specific risk be diversified away by investing in both J Hancock and Lifestyle 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 J Hancock and Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Hancock Ii and Lifestyle Ii Moderate, you can compare the effects of market volatilities on J Hancock and Lifestyle 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 J Hancock with a short position of Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Lifestyle.
Diversification Opportunities for J Hancock and Lifestyle
Very poor diversification
The 3 months correlation between JROUX and Lifestyle is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Lifestyle Ii Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestyle Ii Moderate and J 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 J Hancock Ii are associated (or correlated) with Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestyle Ii Moderate has no effect on the direction of J Hancock i.e., J Hancock and Lifestyle go up and down completely randomly.
Pair Corralation between J Hancock and Lifestyle
Assuming the 90 days horizon J Hancock Ii is expected to under-perform the Lifestyle. In addition to that, J Hancock is 1.99 times more volatile than Lifestyle Ii Moderate. It trades about -0.06 of its total potential returns per unit of risk. Lifestyle Ii Moderate is currently generating about 0.01 per unit of volatility. If you would invest 1,109 in Lifestyle Ii Moderate on December 1, 2024 and sell it today you would earn a total of 1.00 from holding Lifestyle Ii Moderate or generate 0.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
J Hancock Ii vs. Lifestyle Ii Moderate
Performance |
Timeline |
J Hancock Ii |
Lifestyle Ii Moderate |
J Hancock and Lifestyle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with J Hancock and Lifestyle
The main advantage of trading using opposite J Hancock and Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Lifestyle 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 Lifestyle will offset losses from the drop in Lifestyle's long position.J Hancock vs. Transamerica Cleartrack Retirement | J Hancock vs. Tiaa Cref Lifestyle Moderate | J Hancock vs. Hartford Moderate Allocation | J Hancock vs. Jp Morgan Smartretirement |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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