Correlation Between TRON and John Hancock

By analyzing existing cross correlation between TRON and John Hancock Disciplined, you can compare the effects of market volatilities on TRON 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 TRON with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and John Hancock.

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Can any of the company-specific risk be diversified away by investing in both TRON 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 TRON and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for TRON and John Hancock

0.43
  Correlation Coefficient
TRON
John Hancock Disciplined

Very weak diversification

The 3 months correlation between TRON and JDIVX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TRON 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 TRON 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 TRON 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 TRON i.e., TRON and John Hancock go up and down completely randomly.

Pair Corralation between TRON and John Hancock

Assuming the 90 days trading horizon TRON is expected to generate 7.85 times more return on investment than John Hancock. However, TRON is 7.85 times more volatile than John Hancock Disciplined. It trades about 0.1 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.09 per unit of risk. If you would invest  1.92  in TRON on July 23, 2021 and sell it today you would earn a total of  8.08  from holding TRON or generate 420.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy97.2%
ValuesDaily Returns

TRON  vs.  John Hancock Disciplined

 Performance (%) 
      Timeline 
TRON 
 TRON Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TRON are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, TRON sustained solid returns over the last few months and may actually be approaching a breakup point.

TRON Price Channel

John Hancock Disciplined 
 JDIVX Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Disciplined are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

TRON and John Hancock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with TRON and John Hancock

The main advantage of trading using opposite TRON and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON 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 TRON 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.
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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