Correlation Between Intal High and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Intal High 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 Intal High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intal High Relative and John Hancock High, you can compare the effects of market volatilities on Intal High 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 Intal High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and John Hancock.

Diversification Opportunities for Intal High and John Hancock

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Intal and John is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative and John Hancock High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock High and Intal High 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 Intal High Relative 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 High has no effect on the direction of Intal High i.e., Intal High and John Hancock go up and down completely randomly.

Pair Corralation between Intal High and John Hancock

Assuming the 90 days horizon Intal High Relative is expected to generate 3.17 times more return on investment than John Hancock. However, Intal High is 3.17 times more volatile than John Hancock High. It trades about 0.13 of its potential returns per unit of risk. John Hancock High is currently generating about 0.36 per unit of risk. If you would invest  1,450  in Intal High Relative on September 1, 2025 and sell it today you would earn a total of  83.00  from holding Intal High Relative or generate 5.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Intal High Relative  vs.  John Hancock High

 Performance 
       Timeline  
Intal High Relative 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Intal High Relative are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Intal High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
John Hancock High 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock High are ranked lower than 28 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and 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.

Intal High and John Hancock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intal High and John Hancock

The main advantage of trading using opposite Intal High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intal High 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 Intal High Relative and John Hancock High 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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