Correlation Between John Hancock and Alpine Ultra
Can any of the company-specific risk be diversified away by investing in both John Hancock and Alpine Ultra 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 Alpine Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Municipal and Alpine Ultra Short, you can compare the effects of market volatilities on John Hancock and Alpine Ultra 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 Alpine Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Alpine Ultra.
Diversification Opportunities for John Hancock and Alpine Ultra
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Alpine is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Municipal and Alpine Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Ultra Short 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 Municipal are associated (or correlated) with Alpine Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Ultra Short has no effect on the direction of John Hancock i.e., John Hancock and Alpine Ultra go up and down completely randomly.
Pair Corralation between John Hancock and Alpine Ultra
Assuming the 90 days horizon John Hancock Municipal is expected to generate 3.16 times more return on investment than Alpine Ultra. However, John Hancock is 3.16 times more volatile than Alpine Ultra Short. It trades about 0.27 of its potential returns per unit of risk. Alpine Ultra Short is currently generating about 0.18 per unit of risk. If you would invest 998.00 in John Hancock Municipal on June 4, 2025 and sell it today you would earn a total of 19.00 from holding John Hancock Municipal or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Municipal vs. Alpine Ultra Short
Performance |
| Timeline |
| John Hancock Municipal |
| Alpine Ultra Short |
John Hancock and Alpine Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Alpine Ultra
The main advantage of trading using opposite John Hancock and Alpine Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Alpine Ultra 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 Alpine Ultra will offset losses from the drop in Alpine Ultra's long position.| John Hancock vs. Vanguard Limited Term Tax Exempt | John Hancock vs. Vanguard Limited Term Tax Exempt | John Hancock vs. Vanguard Short Term Tax Exempt | John Hancock vs. Vanguard Short Term Tax Exempt |
| Alpine Ultra vs. Vanguard Limited Term Tax Exempt | Alpine Ultra vs. Vanguard Limited Term Tax Exempt | Alpine Ultra vs. Vanguard Short Term Tax Exempt | Alpine Ultra vs. Vanguard Short Term Tax Exempt |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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