Correlation Between John Hancock and Semiconductor Ultrasector
Can any of the company-specific risk be diversified away by investing in both John Hancock and Semiconductor Ultrasector 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 Semiconductor Ultrasector 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 Semiconductor Ultrasector Profund, you can compare the effects of market volatilities on John Hancock and Semiconductor Ultrasector 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 Semiconductor Ultrasector. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Semiconductor Ultrasector.
Diversification Opportunities for John Hancock and Semiconductor Ultrasector
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Semiconductor is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Semiconductor Ultrasector Prof in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Ultrasector 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 Semiconductor Ultrasector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Ultrasector has no effect on the direction of John Hancock i.e., John Hancock and Semiconductor Ultrasector go up and down completely randomly.
Pair Corralation between John Hancock and Semiconductor Ultrasector
Considering the 90-day investment horizon John Hancock is expected to generate 4.86 times less return on investment than Semiconductor Ultrasector. But when comparing it to its historical volatility, John Hancock Financial is 2.19 times less risky than Semiconductor Ultrasector. It trades about 0.17 of its potential returns per unit of risk. Semiconductor Ultrasector Profund is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,918 in Semiconductor Ultrasector Profund on April 24, 2025 and sell it today you would earn a total of 1,467 from holding Semiconductor Ultrasector Profund or generate 76.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Semiconductor Ultrasector Prof
Performance |
| Timeline |
| John Hancock Financial |
| Semiconductor Ultrasector |
John Hancock and Semiconductor Ultrasector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Semiconductor Ultrasector
The main advantage of trading using opposite John Hancock and Semiconductor Ultrasector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Semiconductor Ultrasector 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 Semiconductor Ultrasector will offset losses from the drop in Semiconductor Ultrasector's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Semiconductor Ultrasector vs. T Rowe Price | Semiconductor Ultrasector vs. Ab High Income | Semiconductor Ultrasector vs. Msift High Yield | Semiconductor Ultrasector vs. Siit High Yield |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |