Correlation Between John Hancock and Absolute Capital
Can any of the company-specific risk be diversified away by investing in both John Hancock and Absolute Capital 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 Absolute Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Absolute Capital Asset, you can compare the effects of market volatilities on John Hancock and Absolute Capital 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 Absolute Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Absolute Capital.
Diversification Opportunities for John Hancock and Absolute Capital
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Absolute is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Absolute Capital Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Capital Asset 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 Financial are associated (or correlated) with Absolute Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Capital Asset has no effect on the direction of John Hancock i.e., John Hancock and Absolute Capital go up and down completely randomly.
Pair Corralation between John Hancock and Absolute Capital
Considering the 90-day investment horizon John Hancock is expected to generate 13.57 times less return on investment than Absolute Capital. In addition to that, John Hancock is 2.24 times more volatile than Absolute Capital Asset. It trades about 0.0 of its total potential returns per unit of risk. Absolute Capital Asset is currently generating about 0.13 per unit of volatility. If you would invest 1,217 in Absolute Capital Asset on July 3, 2025 and sell it today you would earn a total of 43.00 from holding Absolute Capital Asset or generate 3.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Financial vs. Absolute Capital Asset
Performance |
Timeline |
John Hancock Financial |
Absolute Capital Asset |
John Hancock and Absolute Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Absolute Capital
The main advantage of trading using opposite John Hancock and Absolute Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Absolute Capital 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 Absolute Capital will offset losses from the drop in Absolute Capital's long position.John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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