Correlation Between John Hancock and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both John Hancock and Massmutual Retiresmart 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 Massmutual Retiresmart 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 Massmutual Retiresmart Servative, you can compare the effects of market volatilities on John Hancock and Massmutual Retiresmart 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 Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Massmutual Retiresmart.
Diversification Opportunities for John Hancock and Massmutual Retiresmart
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Massmutual is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Ii and Massmutual Retiresmart Servati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of John Hancock i.e., John Hancock and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between John Hancock and Massmutual Retiresmart
Assuming the 90 days horizon John Hancock Ii is expected to under-perform the Massmutual Retiresmart. In addition to that, John Hancock is 3.54 times more volatile than Massmutual Retiresmart Servative. It trades about -0.07 of its total potential returns per unit of risk. Massmutual Retiresmart Servative is currently generating about 0.08 per unit of volatility. If you would invest 885.00 in Massmutual Retiresmart Servative on December 28, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Retiresmart Servative or generate 1.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
John Hancock Ii vs. Massmutual Retiresmart Servati
Performance |
Timeline |
John Hancock Ii |
Massmutual Retiresmart |
John Hancock and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Massmutual Retiresmart
The main advantage of trading using opposite John Hancock and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Massmutual Retiresmart 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 Massmutual Retiresmart will offset losses from the drop in Massmutual Retiresmart'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 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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