Correlation Between Pgim Jennison and John Hancock

Can any of the company-specific risk be diversified away by investing in both Pgim Jennison 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 Pgim Jennison and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pgim Jennison Technology and John Hancock Financial, you can compare the effects of market volatilities on Pgim Jennison 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 Pgim Jennison with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pgim Jennison and John Hancock.

Diversification Opportunities for Pgim Jennison and John Hancock

0.78

Correlation Coefficient

Pgim Jennison  John Hancock

Poor diversification

The 3 months correlation between Pgim and John is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pgim Jennison Technology and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Pgim Jennison 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 Pgim Jennison Technology 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 Financial has no effect on the direction of Pgim Jennison i.e., Pgim Jennison and John Hancock go up and down completely randomly.

Pair Corralation between Pgim Jennison and John Hancock

Assuming the 90 days horizon Pgim Jennison Technology is expected to under-perform the John Hancock. In addition to that, Pgim Jennison is 1.52 times more volatile than John Hancock Financial. It trades about -0.13 of its total potential returns per unit of risk. John Hancock Financial is currently generating about -0.07 per unit of volatility. If you would invest  3,461  in John Hancock Financial on December 19, 2024 and sell it today you would lose (204.00) from holding John Hancock Financial or give up 5.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Pgim Jennison Technology  vs.  John Hancock Financial

Pgim Jennison Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pgim Jennison Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

John Hancock Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days John Hancock Financial has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pgim Jennison and John Hancock

The main advantage of trading using opposite Pgim Jennison and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pgim Jennison 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.

The idea behind Pgim Jennison Technology and John Hancock Financial 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.