Correlation Between John Hancock and REDV
Can any of the company-specific risk be diversified away by investing in both John Hancock and REDV 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 REDV 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 REDV, you can compare the effects of market volatilities on John Hancock and REDV 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 REDV. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and REDV.
Diversification Opportunities for John Hancock and REDV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and REDV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and REDV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDV 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 REDV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDV has no effect on the direction of John Hancock i.e., John Hancock and REDV go up and down completely randomly.
Pair Corralation between John Hancock and REDV
If you would invest 2,561 in John Hancock Multifactor on December 29, 2023 and sell it today you would earn a total of 32.00 from holding John Hancock Multifactor or generate 1.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
John Hancock Multifactor vs. REDV
Performance |
Timeline |
John Hancock Multifactor |
REDV |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
John Hancock and REDV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and REDV
The main advantage of trading using opposite John Hancock and REDV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, REDV 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 REDV will offset losses from the drop in REDV's long position.John Hancock vs. Freedom Day Dividend | John Hancock vs. Franklin Templeton ETF | John Hancock vs. IShares MSCI China | John Hancock vs. YieldMax DIS Option |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |