Correlation Between Old Westbury and John Hancock
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and John Hancock Variable, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and John Hancock.
Diversification Opportunities for Old Westbury and John Hancock
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OLD and John is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Old Westbury 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 Old Westbury Large 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 Variable has no effect on the direction of Old Westbury i.e., Old Westbury and John Hancock go up and down completely randomly.
Pair Corralation between Old Westbury and John Hancock
Assuming the 90 days horizon Old Westbury Large is expected to generate 0.56 times more return on investment than John Hancock. However, Old Westbury Large is 1.77 times less risky than John Hancock. It trades about 0.17 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.08 per unit of risk. If you would invest 2,088 in Old Westbury Large on June 6, 2025 and sell it today you would earn a total of 112.00 from holding Old Westbury Large or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. John Hancock Variable
Performance |
| Timeline |
| Old Westbury Large |
| John Hancock Variable |
Old Westbury and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and John Hancock
The main advantage of trading using opposite Old Westbury and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Fixed | Old Westbury vs. Old Westbury Municipal |
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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 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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