Correlation Between Global X and John Hancock
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X and John Hancock Multifactor, you can compare the effects of market volatilities on Global X 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 Global X with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and John Hancock.
Diversification Opportunities for Global X and John Hancock
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and John is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Global X and John Hancock Multifactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Multifactor and Global X 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 Global X 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 Multifactor has no effect on the direction of Global X i.e., Global X and John Hancock go up and down completely randomly.
Pair Corralation between Global X and John Hancock
If you would invest 974.00 in Global X on February 2, 2024 and sell it today you would earn a total of 0.00 from holding Global X or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Global X vs. John Hancock Multifactor
Performance |
Timeline |
Global X |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock Multifactor |
Global X and John Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global X and John Hancock
The main advantage of trading using opposite Global X and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.Global X vs. Vanguard Consumer Staples | Global X vs. Vanguard Materials Index | Global X vs. Vanguard Communication Services | Global X vs. Vanguard Financials Index |
John Hancock vs. Vanguard Consumer Staples | John Hancock vs. Vanguard Materials Index | John Hancock vs. Vanguard Communication Services | John Hancock vs. Vanguard Financials Index |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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