Correlation Between Blackrock 6040 and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Blackrock 6040 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 Blackrock 6040 and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock 6040 Target and John Hancock Funds, you can compare the effects of market volatilities on Blackrock 6040 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 Blackrock 6040 with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock 6040 and John Hancock.

Diversification Opportunities for Blackrock 6040 and John Hancock

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Blackrock and JLKLX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock 6040 Target and John Hancock Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Funds and Blackrock 6040 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 Blackrock 6040 Target 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 Funds has no effect on the direction of Blackrock 6040 i.e., Blackrock 6040 and John Hancock go up and down completely randomly.

Pair Corralation between Blackrock 6040 and John Hancock

Assuming the 90 days horizon Blackrock 6040 Target is expected to generate 0.8 times more return on investment than John Hancock. However, Blackrock 6040 Target is 1.25 times less risky than John Hancock. It trades about -0.24 of its potential returns per unit of risk. John Hancock Funds is currently generating about -0.27 per unit of risk. If you would invest  1,369  in Blackrock 6040 Target on April 3, 2022 and sell it today you would lose (95.00)  from holding Blackrock 6040 Target or give up 6.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.45%
ValuesDaily Returns

Blackrock 6040 Target  vs.  John Hancock Funds

 Performance (%) 
      Timeline 
Blackrock 6040 Target 
Blackrock Performance
0 of 100
Over the last 90 days Blackrock 6040 Target has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the fund investors.

Blackrock Price Channel

John Hancock Funds 
JLKLX Performance
0 of 100
Over the last 90 days John Hancock Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of uncertain performance in the last few months, the Fund's essential indicators remain fairly strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the fund investors.

JLKLX Price Channel

Blackrock 6040 and John Hancock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Blackrock 6040 and John Hancock

The main advantage of trading using opposite Blackrock 6040 and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock 6040 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.

Blackrock 6040 Target

Pair trading matchups for Blackrock 6040

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Visa vs. Blackrock 6040
Arca Biopharma vs. Blackrock 6040
ATT vs. Blackrock 6040
BP PLC vs. Blackrock 6040
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Vmware vs. Blackrock 6040
Liquidia Corp vs. Blackrock 6040
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Blackrock 6040 as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Blackrock 6040's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Blackrock 6040's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Blackrock 6040 Target.
The idea behind Blackrock 6040 Target and John Hancock Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

John Hancock Funds

Pair trading matchups for John Hancock

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 Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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