Correlation Between John Hancock and United Parcel
Can any of the company-specific risk be diversified away by investing in both John Hancock and United Parcel 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 United Parcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and United Parcel Service, you can compare the effects of market volatilities on John Hancock and United Parcel 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 United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and United Parcel.
Diversification Opportunities for John Hancock and United Parcel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and United is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service 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 Disciplined are associated (or correlated) with United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of John Hancock i.e., John Hancock and United Parcel go up and down completely randomly.
Pair Corralation between John Hancock and United Parcel
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.37 times more return on investment than United Parcel. However, John Hancock Disciplined is 2.69 times less risky than United Parcel. It trades about -0.23 of its potential returns per unit of risk. United Parcel Service is currently generating about -0.14 per unit of risk. If you would invest 2,896 in John Hancock Disciplined on January 19, 2024 and sell it today you would lose (116.00) from holding John Hancock Disciplined or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. United Parcel Service
Performance |
| Timeline |
| John Hancock Disciplined |
| United Parcel Service |
John Hancock and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and United Parcel
The main advantage of trading using opposite John Hancock and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| John Hancock vs. Prudential Jennison Servative | John Hancock vs. Prudential Jennison Equity | John Hancock vs. Prudential Jennison Small | John Hancock vs. Prudential Total Return |
| United Parcel vs. GXO Logistics | United Parcel vs. JB Hunt Transport | United Parcel vs. Expeditors International of | United Parcel vs. CH Robinson Worldwide |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets |