Correlation Between Teachers Insurance and John Hancock

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

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

Diversification Opportunities for Teachers Insurance and John Hancock

-0.18

Correlation Coefficient

Teachers Insurance  John Hancock

Good diversification

The 3 months correlation between Teachers and John is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Teachers Insurance And and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Teachers Insurance 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 Teachers Insurance And 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 Variable has no effect on the direction of Teachers Insurance i.e., Teachers Insurance and John Hancock go up and down completely randomly.

Pair Corralation between Teachers Insurance and John Hancock

Assuming the 90 days trading horizon Teachers Insurance And is expected to under-perform the John Hancock. But the fund apears to be less risky and, when comparing its historical volatility, Teachers Insurance And is 9.5 times less risky than John Hancock. The fund trades about -0.37 of its potential returns per unit of risk. The John Hancock Variable is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,797  in John Hancock Variable on August 30, 2024 and sell it today you would earn a total of  416.00  from holding John Hancock Variable or generate 23.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.79%
Values	Daily Returns

Teachers Insurance And  vs.  John Hancock Variable

Teachers Insurance And

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Teachers Insurance And are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Teachers Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Variable

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Variable are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, 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 Teachers Insurance and John Hancock

The main advantage of trading using opposite Teachers Insurance and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teachers Insurance 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 Teachers Insurance And and John Hancock Variable 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.