Correlation Between Northern Small and John Hancock

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

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

Diversification Opportunities for Northern Small and John Hancock

0.0

Correlation Coefficient

Northern Small  John Hancock

Pay attention - limited upside

The 3 months correlation between Northern and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Small Cap and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Northern Small 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 Northern Small Cap 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 Strategic has no effect on the direction of Northern Small i.e., Northern Small and John Hancock go up and down completely randomly.

Pair Corralation between Northern Small and John Hancock

If you would invest  1,251  in Northern Small Cap on May 17, 2025 and sell it today you would earn a total of  120.00  from holding Northern Small Cap or generate 9.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Northern Small Cap  vs.  John Hancock Strategic

Northern Small Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Northern Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Northern Small may actually be approaching a critical reversion point that can send shares even higher in September 2025.

John Hancock Strategic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Strategic are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Northern Small and John Hancock

The main advantage of trading using opposite Northern Small and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Small 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 Northern Small Cap and John Hancock Strategic 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.