Correlation Between John Hancock and Blackstone
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackstone 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 Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Tax Advantaged and Blackstone Group, you can compare the effects of market volatilities on John Hancock and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackstone.
Diversification Opportunities for John Hancock and Blackstone
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Blackstone is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Tax Advantaged are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of John Hancock i.e., John Hancock and Blackstone go up and down completely randomly.
Pair Corralation between John Hancock and Blackstone
Considering the 90-day investment horizon John Hancock Tax Advantaged is expected to generate 0.45 times more return on investment than Blackstone. However, John Hancock Tax Advantaged is 2.22 times less risky than Blackstone. It trades about 0.05 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.03 per unit of risk. If you would invest 492.00 in John Hancock Tax Advantaged on January 19, 2024 and sell it today you would earn a total of 7.00 from holding John Hancock Tax Advantaged or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Tax Advantaged vs. Blackstone Group
Performance |
| Timeline |
| John Hancock Tax |
| Blackstone Group |
John Hancock and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackstone
The main advantage of trading using opposite John Hancock and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| John Hancock vs. Royce Value Closed | John Hancock vs. Tekla Healthcare Investors | John Hancock vs. Cohen Steers Qualityome |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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