Correlation Between John Hancock and Cardinal Small
Can any of the company-specific risk be diversified away by investing in both John Hancock and Cardinal Small 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 Cardinal Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Ii and Cardinal Small Cap, you can compare the effects of market volatilities on John Hancock and Cardinal Small 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 Cardinal Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Cardinal Small.
Diversification Opportunities for John Hancock and Cardinal Small
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between John and Cardinal is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Ii and Cardinal Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Small Cap 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 Ii are associated (or correlated) with Cardinal Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Small Cap has no effect on the direction of John Hancock i.e., John Hancock and Cardinal Small go up and down completely randomly.
Pair Corralation between John Hancock and Cardinal Small
Assuming the 90 days horizon John Hancock Ii is expected to generate 83.41 times more return on investment than Cardinal Small. However, John Hancock is 83.41 times more volatile than Cardinal Small Cap. It trades about 0.08 of its potential returns per unit of risk. Cardinal Small Cap is currently generating about 0.22 per unit of risk. If you would invest 1,831 in John Hancock Ii on September 14, 2024 and sell it today you would earn a total of 103.00 from holding John Hancock Ii or generate 5.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
John Hancock Ii vs. Cardinal Small Cap
Performance |
Timeline |
John Hancock Ii |
Cardinal Small Cap |
John Hancock and Cardinal Small Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Cardinal Small
The main advantage of trading using opposite John Hancock and Cardinal Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Cardinal Small 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 Cardinal Small will offset losses from the drop in Cardinal Small's long position.John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
Cardinal Small vs. Victory Rs Partners | Cardinal Small vs. John Hancock Ii | Cardinal Small vs. Lsv Small Cap | Cardinal Small vs. Mutual Of America |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Bonds Directory Find actively traded corporate debentures issued by US companies |