Correlation Between Wasatch Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Wasatch 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 Wasatch 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 Wasatch Large Cap and John Hancock Global, you can compare the effects of market volatilities on Wasatch 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 Wasatch Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Large and John Hancock.
Diversification Opportunities for Wasatch Large and John Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wasatch and John is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Large Cap and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Wasatch 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 Wasatch 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 Global has no effect on the direction of Wasatch Large i.e., Wasatch Large and John Hancock go up and down completely randomly.
Pair Corralation between Wasatch Large and John Hancock
Assuming the 90 days horizon Wasatch Large is expected to generate 1.03 times less return on investment than John Hancock. But when comparing it to its historical volatility, Wasatch Large Cap is 1.04 times less risky than John Hancock. It trades about 0.22 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,227 in John Hancock Global on May 29, 2025 and sell it today you would earn a total of 94.00 from holding John Hancock Global or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Wasatch Large Cap vs. John Hancock Global
Performance |
| Timeline |
| Wasatch Large Cap |
| John Hancock Global |
Wasatch Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch Large and John Hancock
The main advantage of trading using opposite Wasatch Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch 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.| Wasatch Large vs. Columbia Global Technology | Wasatch Large vs. Franklin Biotechnology Discovery | Wasatch Large vs. Allianzgi Technology Fund | Wasatch Large vs. Fidelity Advisor Technology |
| John Hancock vs. Firsthand Alternative Energy | John Hancock vs. Fidelity Advisor Energy | John Hancock vs. Goehring Rozencwajg Resources | John Hancock vs. Gamco Natural Resources |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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