Correlation Between All Asset and John Hancock

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

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

Diversification Opportunities for All Asset and John Hancock

0.53

Correlation Coefficient

All Asset  John Hancock

Very weak diversification

The 3 months correlation between All and John is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding All Asset Fund 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 All Asset 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 All Asset Fund 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 All Asset i.e., All Asset and John Hancock go up and down completely randomly.

Pair Corralation between All Asset and John Hancock

Assuming the 90 days horizon All Asset Fund is expected to generate 0.31 times more return on investment than John Hancock. However, All Asset Fund is 3.19 times less risky than John Hancock. It trades about 0.19 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.0 per unit of risk. If you would invest  1,114  in All Asset Fund on July 17, 2025 and sell it today you would earn a total of  46.00  from holding All Asset Fund or generate 4.13% return on investment over 90 days.

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

All Asset Fund  vs.  John Hancock Financial

All Asset Fund

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in All Asset Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, All Asset 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

Weakest

Over the last 90 days John Hancock Financial has generated negative risk-adjusted returns adding no value to fund investors. 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 All Asset and John Hancock

The main advantage of trading using opposite All Asset and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if All Asset 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 All Asset Fund 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.