Correlation Between John Hancock and SCOR PK
Can any of the company-specific risk be diversified away by investing in both John Hancock and SCOR PK 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 SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock International and SCOR PK, you can compare the effects of market volatilities on John Hancock and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and SCOR PK.
Diversification Opportunities for John Hancock and SCOR PK
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and SCOR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock International and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 International are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of John Hancock i.e., John Hancock and SCOR PK go up and down completely randomly.
Pair Corralation between John Hancock and SCOR PK
Assuming the 90 days horizon John Hancock International is expected to generate 0.35 times more return on investment than SCOR PK. However, John Hancock International is 2.86 times less risky than SCOR PK. It trades about 0.08 of its potential returns per unit of risk. SCOR PK is currently generating about -0.31 per unit of risk. If you would invest 2,671 in John Hancock International on March 12, 2024 and sell it today you would earn a total of 34.00 from holding John Hancock International or generate 1.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock International vs. SCOR PK
Performance |
Timeline |
John Hancock Interna |
SCOR PK |
John Hancock and SCOR PK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and SCOR PK
The main advantage of trading using opposite John Hancock and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.John Hancock vs. High Yield Municipal Fund | John Hancock vs. Via Renewables | John Hancock vs. T Rowe Price | John Hancock vs. Bondbloxx ETF Trust |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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