Correlation Between John Hancock and Northern Trust
Can any of the company-specific risk be diversified away by investing in both John Hancock and Northern Trust 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 Northern Trust 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 Northern Trust, you can compare the effects of market volatilities on John Hancock and Northern Trust 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 Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Northern Trust.
Diversification Opportunities for John Hancock and Northern Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Trust 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 Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of John Hancock i.e., John Hancock and Northern Trust go up and down completely randomly.
Pair Corralation between John Hancock and Northern Trust
If you would invest (100.00) in Northern Trust on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Northern Trust or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
John Hancock Tax Advantaged vs. Northern Trust
Performance |
| Timeline |
| John Hancock Tax |
| Northern Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Northern Trust
The main advantage of trading using opposite John Hancock and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust's long position.| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
| Northern Trust vs. Hurco Companies | Northern Trust vs. Forsys Metals Corp | Northern Trust vs. Jacobs Solutions | Northern Trust vs. Hawkins |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |