Correlation Between John Hancock and ADRE
Can any of the company-specific risk be diversified away by investing in both John Hancock and ADRE 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 ADRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Multifactor and ADRE, you can compare the effects of market volatilities on John Hancock and ADRE 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 ADRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and ADRE.
Diversification Opportunities for John Hancock and ADRE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and ADRE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and ADRE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRE 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 Multifactor are associated (or correlated) with ADRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRE has no effect on the direction of John Hancock i.e., John Hancock and ADRE go up and down completely randomly.
Pair Corralation between John Hancock and ADRE
If you would invest 3,820 in ADRE on January 20, 2024 and sell it today you would earn a total of 0.00 from holding ADRE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
John Hancock Multifactor vs. ADRE
Performance |
| Timeline |
| John Hancock Multifactor |
| ADRE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and ADRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and ADRE
The main advantage of trading using opposite John Hancock and ADRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, ADRE 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 ADRE will offset losses from the drop in ADRE's long position.| John Hancock vs. John Hancock Multifactor | John Hancock vs. John Hancock Multifactor | John Hancock vs. John Hancock Multifactor | John Hancock vs. PIMCO RAFI Dynamic |
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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