Correlation Between Jpmorgan Income and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Jpmorgan Income 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 Jpmorgan Income and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Income Fund and John Hancock Income, you can compare the effects of market volatilities on Jpmorgan Income 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 Jpmorgan Income with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Income and John Hancock.

Diversification Opportunities for Jpmorgan Income and John Hancock

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Jpmorgan Income and John Hancock

If you would invest  781.00  in Jpmorgan Income Fund on December 29, 2023 and sell it today you would earn a total of  58.00  from holding Jpmorgan Income Fund or generate 7.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

JPMORGAN INCOME FUND  vs.  JOHN HANCOCK INCOME

 Performance 
       Timeline  
Jpmorgan Income Fund 

Risk-Adjusted Performance

10 of 100

 
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High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Income Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jpmorgan Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
John Hancock Income 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days John Hancock Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Jpmorgan Income and John Hancock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jpmorgan Income and John Hancock

The main advantage of trading using opposite Jpmorgan Income and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Income 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 Jpmorgan Income Fund and John Hancock Income 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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