Correlation Between Guidemark Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Guidemark 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 Guidemark 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 Guidemark Large Cap and John Hancock Strategic, you can compare the effects of market volatilities on Guidemark 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 Guidemark Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark Large and John Hancock.
Diversification Opportunities for Guidemark Large and John Hancock
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Guidemark and John is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Guidemark 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 Guidemark 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 Strategic has no effect on the direction of Guidemark Large i.e., Guidemark Large and John Hancock go up and down completely randomly.
Pair Corralation between Guidemark Large and John Hancock
Assuming the 90 days horizon Guidemark Large is expected to generate 1.28 times less return on investment than John Hancock. In addition to that, Guidemark Large is 1.24 times more volatile than John Hancock Strategic. It trades about 0.37 of its total potential returns per unit of risk. John Hancock Strategic is currently generating about 0.59 per unit of volatility. If you would invest 2,723 in John Hancock Strategic on April 20, 2025 and sell it today you would earn a total of 208.00 from holding John Hancock Strategic or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guidemark Large Cap vs. John Hancock Strategic
Performance |
| Timeline |
| Guidemark Large Cap |
| John Hancock Strategic |
Guidemark Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidemark Large and John Hancock
The main advantage of trading using opposite Guidemark Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark 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.| Guidemark Large vs. Guidemark Large Cap | Guidemark Large vs. Guidemark Smallmid Cap | Guidemark Large vs. Guidepath Servative Allocation | Guidemark Large vs. Guidepath Tactical Allocation |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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