Correlation Between J Hancock and John Hancock
Can any of the company-specific risk be diversified away by investing in both J Hancock and John 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 J Hancock and John Hancock 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 John Hancock Investment, you can compare the effects of market volatilities on J Hancock and John 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 J Hancock with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and John Hancock.
Diversification Opportunities for J Hancock and John Hancock
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JROUX and John is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and John Hancock Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investment 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Investment has no effect on the direction of J Hancock i.e., J Hancock and John Hancock go up and down completely randomly.
Pair Corralation between J Hancock and John Hancock
Assuming the 90 days horizon J Hancock Ii is expected to under-perform the John Hancock. In addition to that, J Hancock is 2.92 times more volatile than John Hancock Investment. It trades about -0.04 of its total potential returns per unit of risk. John Hancock Investment is currently generating about 0.13 per unit of volatility. If you would invest 882.00 in John Hancock Investment on December 27, 2024 and sell it today you would earn a total of 22.00 from holding John Hancock Investment or generate 2.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
J Hancock Ii vs. John Hancock Investment
Performance |
Timeline |
J Hancock Ii |
John Hancock Investment |
J Hancock and John Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with J Hancock and John Hancock
The main advantage of trading using opposite J Hancock and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, John 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 John Hancock will offset losses from the drop in John Hancock's long position.J Hancock vs. Virtus Multi Sector Short | J Hancock vs. Cmg Ultra Short | J Hancock vs. Transamerica Short Term Bond | J Hancock vs. Delaware Investments Ultrashort |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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