Correlation Between GARDNER DENVER and John Hancock

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

Diversification Opportunities for GARDNER DENVER and John Hancock

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GARDNER and JLKLX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GARDNER DENVER INC 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 GARDNER DENVER 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 GARDNER DENVER INC 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 GARDNER DENVER i.e., GARDNER DENVER and John Hancock go up and down completely randomly.

Pair Corralation between GARDNER DENVER and John Hancock

If you would invest  945.00  in John Hancock Funds on April 4, 2022 and sell it today you would earn a total of  105.00  from holding John Hancock Funds or generate 11.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GARDNER DENVER INC  vs.  John Hancock Funds

 Performance (%) 
      Timeline 
GARDNER DENVER INC 
GARDNER Performance
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Over the last 90 days GARDNER DENVER INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, GARDNER DENVER is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
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

GARDNER DENVER and John Hancock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GARDNER DENVER and John Hancock

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

GARDNER DENVER INC

Pair trading matchups for GARDNER DENVER

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GLAXOSMITHKLINE PLC vs. GARDNER DENVER
Calyxt vs. GARDNER DENVER
MITIE GROUP vs. GARDNER DENVER
Context Therapeutics vs. GARDNER DENVER
Visa vs. GARDNER DENVER
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Alphabet vs. GARDNER DENVER
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 GARDNER DENVER 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. GARDNER DENVER'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, GARDNER DENVER'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 GARDNER DENVER INC.
The idea behind GARDNER DENVER INC 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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