Correlation Between J Hancock and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both J Hancock and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Smallmid Cap Equity, you can compare the effects of market volatilities on J Hancock and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Tiaa Cref.

Diversification Opportunities for J Hancock and Tiaa Cref

0.82

Correlation Coefficient

J Hancock  Tiaa Cref

Very poor diversification

The 3 months correlation between JROUX and Tiaa is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Tiaa Cref Smallmid Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Smallmid 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Smallmid has no effect on the direction of J Hancock i.e., J Hancock and Tiaa Cref go up and down completely randomly.

Pair Corralation between J Hancock and Tiaa Cref

Assuming the 90 days horizon J Hancock Ii is expected to generate 0.34 times more return on investment than Tiaa Cref. However, J Hancock Ii is 2.92 times less risky than Tiaa Cref. It trades about 0.15 of its potential returns per unit of risk. Tiaa Cref Smallmid Cap Equity is currently generating about 0.02 per unit of risk. If you would invest  1,372  in J Hancock Ii on September 12, 2024 and sell it today you would earn a total of  81.00  from holding J Hancock Ii or generate 5.9% 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.  Tiaa Cref Smallmid Cap Equity

J Hancock Ii

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in J Hancock Ii are ranked lower than 12 (%) 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.

Tiaa Cref Smallmid

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Smallmid Cap Equity are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with J Hancock and Tiaa Cref

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

The idea behind J Hancock Ii and Tiaa Cref Smallmid Cap Equity 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.