Correlation Between John Hancock and Blackrock 6040

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

Diversification Opportunities for John Hancock and Blackrock 6040

0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between JLKLX and Blackrock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Blackrock 6040 Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock 6040 Target and John Hancock 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 John Hancock Funds are associated (or correlated) with Blackrock 6040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock 6040 Target has no effect on the direction of John Hancock i.e., John Hancock and Blackrock 6040 go up and down completely randomly.

Pair Corralation between John Hancock and Blackrock 6040

Assuming the 90 days horizon John Hancock Funds is expected to under-perform the Blackrock 6040. In addition to that, John Hancock is 1.37 times more volatile than Blackrock 6040 Target. It trades about -0.13 of its total potential returns per unit of risk. Blackrock 6040 Target is currently generating about -0.13 per unit of volatility. If you would invest  1,531  in Blackrock 6040 Target on April 4, 2022 and sell it today you would lose (257.00)  from holding Blackrock 6040 Target or give up 16.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

John Hancock Funds  vs.  Blackrock 6040 Target

 Performance (%) 
      Timeline 
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 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 and Blackrock 6040 Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with John Hancock and Blackrock 6040

The main advantage of trading using opposite John Hancock and Blackrock 6040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackrock 6040 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 Blackrock 6040 will offset losses from the drop in Blackrock 6040's long position.

John Hancock Funds

Pair trading matchups for John Hancock

The idea behind John Hancock Funds and Blackrock 6040 Target 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.

Blackrock 6040 Target

Pair trading matchups for Blackrock 6040

Cyclacel Pharmaceuti vs. Blackrock 6040
Vmware vs. Blackrock 6040
MITIE GROUP vs. Blackrock 6040
Alzamend Neuro vs. Blackrock 6040
Arca Biopharma vs. Blackrock 6040
Seneca Foods vs. Blackrock 6040
Liquidia Corp vs. Blackrock 6040
Context Therapeutics vs. Blackrock 6040
Alphabet vs. Blackrock 6040
Calyxt vs. Blackrock 6040
RENEWI PLC 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.
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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