Correlation Between Mesirow Financial and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mesirow Financial 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 Mesirow Financial and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mesirow Financial Small and John Hancock Financial, you can compare the effects of market volatilities on Mesirow Financial 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 Mesirow Financial with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesirow Financial and John Hancock.
Diversification Opportunities for Mesirow Financial and John Hancock
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mesirow and John is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mesirow Financial Small and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Mesirow Financial 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 Mesirow Financial Small 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 Financial has no effect on the direction of Mesirow Financial i.e., Mesirow Financial and John Hancock go up and down completely randomly.
Pair Corralation between Mesirow Financial and John Hancock
Assuming the 90 days horizon Mesirow Financial is expected to generate 1.28 times less return on investment than John Hancock. But when comparing it to its historical volatility, Mesirow Financial Small is 1.31 times less risky than John Hancock. It trades about 0.03 of its potential returns per unit of risk. John Hancock Financial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,795 in John Hancock Financial on March 24, 2025 and sell it today you would earn a total of 467.00 from holding John Hancock Financial or generate 16.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesirow Financial Small vs. John Hancock Financial
Performance |
| Timeline |
| Mesirow Financial Small |
| John Hancock Financial |
Mesirow Financial and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesirow Financial and John Hancock
The main advantage of trading using opposite Mesirow Financial and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesirow Financial 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.| Mesirow Financial vs. John Hancock Var | Mesirow Financial vs. Invesco Global Health | Mesirow Financial vs. T Rowe Price | Mesirow Financial vs. Lord Abbett Health |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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