Correlation Between Cibc Atlas and John Hancock

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

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

Diversification Opportunities for Cibc Atlas and John Hancock

0.78

Correlation Coefficient

Cibc Atlas  John Hancock

Poor diversification

The 3 months correlation between Cibc and John is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas All and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Cibc Atlas 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 Cibc Atlas All 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 Financial has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and John Hancock go up and down completely randomly.

Pair Corralation between Cibc Atlas and John Hancock

Assuming the 90 days horizon Cibc Atlas is expected to generate 1.11 times less return on investment than John Hancock. But when comparing it to its historical volatility, Cibc Atlas All is 1.29 times less risky than John Hancock. It trades about 0.07 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,404  in John Hancock Financial on May 20, 2025 and sell it today you would earn a total of  141.00  from holding John Hancock Financial or generate 4.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cibc Atlas All  vs.  John Hancock Financial

Cibc Atlas All

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas All are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cibc Atlas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Financial

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Financial are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, John Hancock is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cibc Atlas and John Hancock

The main advantage of trading using opposite Cibc Atlas and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cibc Atlas 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 Cibc Atlas All and John Hancock Financial 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.