Correlation Between John Hancock and Jpmorgan Income

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

Diversification Opportunities for John Hancock and Jpmorgan Income

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between John and Jpmorgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JOHN HANCOCK INCOME and JPMORGAN INCOME FUND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Income Fund 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 Income are associated (or correlated) with Jpmorgan Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Income Fund has no effect on the direction of John Hancock i.e., John Hancock and Jpmorgan Income go up and down completely randomly.

Pair Corralation between John Hancock and Jpmorgan Income

If you would invest  834.00  in Jpmorgan Income Fund on December 30, 2023 and sell it today you would earn a total of  5.00  from holding Jpmorgan Income Fund or generate 0.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

JOHN HANCOCK INCOME  vs.  JPMORGAN INCOME FUND

 Performance 
       Timeline  
John Hancock Income 

Risk-Adjusted Performance

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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 Fund 

Risk-Adjusted Performance

9 of 100

 
Low
 
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OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jpmorgan Income Fund are ranked lower than 9 (%) 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 and Jpmorgan Income Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with John Hancock and Jpmorgan Income

The main advantage of trading using opposite John Hancock and Jpmorgan Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Jpmorgan Income 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 Jpmorgan Income will offset losses from the drop in Jpmorgan Income's long position.
The idea behind John Hancock Income and Jpmorgan Income Fund 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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