Correlation Between Short Precious and John Hancock

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

Diversification Opportunities for Short Precious and John Hancock

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Short and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SHORT PRECIOUS METALS and JOHN HANCOCK DISCIPLINED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Short Precious 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 Short Precious Metals 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 Disciplined has no effect on the direction of Short Precious i.e., Short Precious and John Hancock go up and down completely randomly.

Pair Corralation between Short Precious and John Hancock

If you would invest  974.00  in Short Precious Metals on December 29, 2023 and sell it today you would earn a total of  213.00  from holding Short Precious Metals or generate 21.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SHORT PRECIOUS METALS  vs.  JOHN HANCOCK DISCIPLINED

 Performance 
       Timeline  
Short Precious Metals 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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

Short Precious and John Hancock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Short Precious and John Hancock

The main advantage of trading using opposite Short Precious and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Precious 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 Short Precious Metals and John Hancock Disciplined 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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