Correlation Between John Hancock and Cref Inflation
Can any of the company-specific risk be diversified away by investing in both John Hancock and Cref Inflation 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 Cref Inflation 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 Cref Inflation Linked Bond, you can compare the effects of market volatilities on John Hancock and Cref Inflation 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 Cref Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Cref Inflation.
Diversification Opportunities for John Hancock and Cref Inflation
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Cref is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked 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 Cref Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of John Hancock i.e., John Hancock and Cref Inflation go up and down completely randomly.
Pair Corralation between John Hancock and Cref Inflation
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Cref Inflation. In addition to that, John Hancock is 11.12 times more volatile than Cref Inflation Linked Bond. It trades about -0.05 of its total potential returns per unit of risk. Cref Inflation Linked Bond is currently generating about 0.01 per unit of volatility. If you would invest 9,104 in Cref Inflation Linked Bond on September 6, 2025 and sell it today you would earn a total of 4.00 from holding Cref Inflation Linked Bond or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
John Hancock Financial vs. Cref Inflation Linked Bond
Performance |
| Timeline |
| John Hancock Financial |
| Cref Inflation Linked |
John Hancock and Cref Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Cref Inflation
The main advantage of trading using opposite John Hancock and Cref Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Cref Inflation 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 Cref Inflation will offset losses from the drop in Cref Inflation's long position.| John Hancock vs. Vanguard Health Care | John Hancock vs. Live Oak Health | John Hancock vs. Eventide Healthcare Life | John Hancock vs. Prudential Health Sciences |
| Cref Inflation vs. Ultrasmall Cap Profund Ultrasmall Cap | Cref Inflation vs. Ultramid Cap Profund Ultramid Cap | Cref Inflation vs. Small Cap Growth Profund | Cref Inflation vs. Mid Cap Value Profund |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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