Correlation Between Aqr Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Aqr Large 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 Aqr Large and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and John Hancock Esg, you can compare the effects of market volatilities on Aqr Large 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 Aqr Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and John Hancock.
Diversification Opportunities for Aqr Large and John Hancock
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aqr and John is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap and John Hancock Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Esg and Aqr Large 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 Aqr Large 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 Esg has no effect on the direction of Aqr Large i.e., Aqr Large and John Hancock go up and down completely randomly.
Pair Corralation between Aqr Large and John Hancock
Assuming the 90 days horizon Aqr Large Cap is expected to generate 1.08 times more return on investment than John Hancock. However, Aqr Large is 1.08 times more volatile than John Hancock Esg. It trades about 0.27 of its potential returns per unit of risk. John Hancock Esg is currently generating about 0.26 per unit of risk. If you would invest 2,249 in Aqr Large Cap on April 29, 2025 and sell it today you would earn a total of 149.00 from holding Aqr Large Cap or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. John Hancock Esg
Performance |
| Timeline |
| Aqr Large Cap |
| John Hancock Esg |
Aqr Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and John Hancock
The main advantage of trading using opposite Aqr Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large 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.| Aqr Large vs. Jpmorgan Diversified Fund | Aqr Large vs. Wells Fargo Diversified | Aqr Large vs. Fuller Thaler Behavioral | Aqr Large vs. Royce Premier Fund |
| John Hancock vs. Tfa Alphagen Growth | John Hancock vs. Qs Moderate Growth | John Hancock vs. Growth Allocation Fund | John Hancock vs. Franklin Growth Opportunities |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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