Correlation Between ATT and John Hancock

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

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

Diversification Opportunities for ATT and John Hancock

-0.76

Correlation Coefficient

ATT  John Hancock

Pay attention - limited upside

The 3 months correlation between ATT and John is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc 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 ATT 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 ATT Inc 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 ATT i.e., ATT and John Hancock go up and down completely randomly.

Pair Corralation between ATT and John Hancock

Taking into account the 90-day investment horizon ATT Inc is expected to generate 1.0 times more return on investment than John Hancock. However, ATT is 1.0 times more volatile than John Hancock Strategic. It trades about 0.21 of its potential returns per unit of risk. John Hancock Strategic is currently generating about -0.04 per unit of risk. If you would invest  2,462  in ATT Inc on August 24, 2025 and sell it today you would earn a total of  131.00  from holding ATT Inc or generate 5.32% return on investment over 90 days.

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

ATT Inc  vs.  John Hancock Strategic

ATT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

John Hancock Strategic

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Strategic are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ATT and John Hancock

The main advantage of trading using opposite ATT and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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 ATT Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.