Correlation Between John Hancock and Ultrasmall-cap Profund
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ultrasmall-cap Profund 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 Ultrasmall-cap Profund 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 Ultrasmall Cap Profund Ultrasmall Cap, you can compare the effects of market volatilities on John Hancock and Ultrasmall-cap Profund 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 Ultrasmall-cap Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ultrasmall-cap Profund.
Diversification Opportunities for John Hancock and Ultrasmall-cap Profund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and ULTRASMALL-CAP is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Ultrasmall Cap Profund Ultrasm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultrasmall Cap Profund 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 Ultrasmall-cap Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultrasmall Cap Profund has no effect on the direction of John Hancock i.e., John Hancock and Ultrasmall-cap Profund go up and down completely randomly.
Pair Corralation between John Hancock and Ultrasmall-cap Profund
Considering the 90-day investment horizon John Hancock Financial is expected to generate 0.57 times more return on investment than Ultrasmall-cap Profund. However, John Hancock Financial is 1.75 times less risky than Ultrasmall-cap Profund. It trades about 0.07 of its potential returns per unit of risk. Ultrasmall Cap Profund Ultrasmall Cap is currently generating about 0.03 per unit of risk. If you would invest 2,241 in John Hancock Financial on June 5, 2025 and sell it today you would earn a total of 1,470 from holding John Hancock Financial or generate 65.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Ultrasmall Cap Profund Ultrasm
Performance |
| Timeline |
| John Hancock Financial |
| Ultrasmall Cap Profund |
John Hancock and Ultrasmall-cap Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ultrasmall-cap Profund
The main advantage of trading using opposite John Hancock and Ultrasmall-cap Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ultrasmall-cap Profund 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 Ultrasmall-cap Profund will offset losses from the drop in Ultrasmall-cap Profund'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 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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