Correlation Between John Hancock and Capital World
Can any of the company-specific risk be diversified away by investing in both John Hancock and Capital World 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 Capital World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and Capital World Growth, you can compare the effects of market volatilities on John Hancock and Capital World 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 Capital World. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Capital World.
Diversification Opportunities for John Hancock and Capital World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Capital World Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital World Growth 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 Global are associated (or correlated) with Capital World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital World Growth has no effect on the direction of John Hancock i.e., John Hancock and Capital World go up and down completely randomly.
Pair Corralation between John Hancock and Capital World
If you would invest 5,245 in Capital World Growth on January 24, 2024 and sell it today you would earn a total of 993.00 from holding Capital World Growth or generate 18.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
John Hancock Global vs. Capital World Growth
Performance |
Timeline |
John Hancock Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capital World Growth |
John Hancock and Capital World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Capital World
The main advantage of trading using opposite John Hancock and Capital World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Capital World 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 Capital World will offset losses from the drop in Capital World's long position.John Hancock vs. Purpose Silver Bullion | John Hancock vs. Vanguard Precious Metals | John Hancock vs. Global Gold Fund | John Hancock vs. Franklin Gold Precious |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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