Correlation Between Blackrock Exchange and John Hancock

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

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

Diversification Opportunities for Blackrock Exchange and John Hancock

0.0

Correlation Coefficient

Blackrock Exchange  John Hancock

Pay attention - limited upside

The 3 months correlation between Blackrock and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Exchange Portfolio and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Blackrock Exchange 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 Blackrock Exchange Portfolio 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 Money has no effect on the direction of Blackrock Exchange i.e., Blackrock Exchange and John Hancock go up and down completely randomly.

Pair Corralation between Blackrock Exchange and John Hancock

If you would invest  228,008  in Blackrock Exchange Portfolio on December 30, 2024 and sell it today you would earn a total of  2,818  from holding Blackrock Exchange Portfolio or generate 1.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.32%
Values	Daily Returns

Blackrock Exchange Portfolio  vs.  John Hancock Money

Blackrock Exchange

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Exchange Portfolio are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Blackrock Exchange is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days John Hancock Money 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 Blackrock Exchange and John Hancock

The main advantage of trading using opposite Blackrock Exchange and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Exchange 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 Blackrock Exchange Portfolio and John Hancock Money 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.