Correlation Between Prudential Financial and John Hancock
Can any of the company-specific risk be diversified away by investing in both Prudential 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 Prudential 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 Prudential Financial Services and John Hancock Disciplined, you can compare the effects of market volatilities on Prudential 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 Prudential Financial with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Financial and John Hancock.
Diversification Opportunities for Prudential Financial and John Hancock
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Prudential and John is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Financial Services and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Prudential 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 Prudential Financial Services 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 Disciplined has no effect on the direction of Prudential Financial i.e., Prudential Financial and John Hancock go up and down completely randomly.
Pair Corralation between Prudential Financial and John Hancock
Assuming the 90 days horizon Prudential Financial is expected to generate 1.19 times less return on investment than John Hancock. In addition to that, Prudential Financial is 1.48 times more volatile than John Hancock Disciplined. It trades about 0.12 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.22 per unit of volatility. If you would invest 2,303 in John Hancock Disciplined on May 27, 2025 and sell it today you would earn a total of 190.00 from holding John Hancock Disciplined or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Financial Services vs. John Hancock Disciplined
Performance |
| Timeline |
| Prudential Financial |
| John Hancock Disciplined |
Prudential Financial and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Financial and John Hancock
The main advantage of trading using opposite Prudential Financial and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential 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.| Prudential Financial vs. Invesco Energy Fund | Prudential Financial vs. Gamco Natural Resources | Prudential Financial vs. Icon Natural Resources | Prudential Financial vs. Vanguard Energy Index |
| John Hancock vs. Global Equity Fund | John Hancock vs. Jhancock Global Equity | John Hancock vs. Jhancock Global Equity | John Hancock vs. Jhancock Global Equity |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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