Correlation Between John Hancock and Growth Fund

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

By analyzing existing cross correlation between John Hancock Money and Growth Fund Of, you can compare the effects of market volatilities on John Hancock and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Growth Fund.

Diversification Opportunities for John Hancock and Growth Fund

0.0

Correlation Coefficient

John Hancock  Growth Fund

Pay attention - limited upside

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

Pair Corralation between John Hancock and Growth Fund

If you would invest  7,611  in Growth Fund Of on September 5, 2024 and sell it today you would earn a total of  554.00  from holding Growth Fund Of or generate 7.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

John Hancock Money  vs.  Growth Fund Of

John Hancock Money

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Money has generated negative risk-adjusted returns adding no value to fund investors. 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.

Growth Fund

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Growth Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with John Hancock and Growth Fund

The main advantage of trading using opposite John Hancock and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.

The idea behind John Hancock Money and Growth Fund Of 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.