Correlation Between IShares Aaa and John Hancock
Can any of the company-specific risk be diversified away by investing in both IShares Aaa 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 IShares Aaa and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Aaa and John Hancock Exchange Traded, you can compare the effects of market volatilities on IShares Aaa 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 IShares Aaa with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Aaa and John Hancock.
Diversification Opportunities for IShares Aaa and John Hancock
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and John is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares Aaa and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and IShares Aaa 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 iShares Aaa 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 Exchange has no effect on the direction of IShares Aaa i.e., IShares Aaa and John Hancock go up and down completely randomly.
Pair Corralation between IShares Aaa and John Hancock
Given the investment horizon of 90 days iShares Aaa is expected to under-perform the John Hancock. But the etf apears to be less risky and, when comparing its historical volatility, iShares Aaa is 1.02 times less risky than John Hancock. The etf trades about -0.22 of its potential returns per unit of risk. The John Hancock Exchange Traded is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 2,108 in John Hancock Exchange Traded on January 20, 2024 and sell it today you would lose (42.00) from holding John Hancock Exchange Traded or give up 1.99% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
iShares Aaa vs. John Hancock Exchange Traded
Performance |
Timeline |
iShares Aaa |
John Hancock Exchange |
IShares Aaa and John Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares Aaa and John Hancock
The main advantage of trading using opposite IShares Aaa and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Aaa 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.IShares Aaa vs. PrimeEnergy | IShares Aaa vs. Israel Acquisitions Corp | IShares Aaa vs. CKX Lands | IShares Aaa vs. HUMANA INC |
John Hancock vs. PrimeEnergy | John Hancock vs. Israel Acquisitions Corp | John Hancock vs. CKX Lands | John Hancock vs. HUMANA INC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |