Correlation Between John Hancock and LIFE STORAGE

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Can any of the company-specific risk be diversified away by investing in both John Hancock and LIFE STORAGE 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 LIFE STORAGE 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 LIFE STORAGE INC, you can compare the effects of market volatilities on John Hancock and LIFE STORAGE 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 LIFE STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and LIFE STORAGE.

Diversification Opportunities for John Hancock and LIFE STORAGE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between JLKLX and LIFE STORAGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and LIFE STORAGE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE STORAGE INC 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 LIFE STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE STORAGE INC has no effect on the direction of John Hancock i.e., John Hancock and LIFE STORAGE go up and down completely randomly.

Pair Corralation between John Hancock and LIFE STORAGE

If you would invest (100.00)  in LIFE STORAGE INC on April 8, 2022 and sell it today you would earn a total of  100.00  from holding LIFE STORAGE INC or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

John Hancock Funds  vs.  LIFE STORAGE INC

 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 unsteady 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

LIFE STORAGE INC 
LIFE STORAGE Performance
0 of 100
Over the last 90 days LIFE STORAGE INC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, LIFE STORAGE is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

John Hancock and LIFE STORAGE Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with John Hancock and LIFE STORAGE

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

John Hancock Funds

Pair trading matchups for John Hancock

The idea behind John Hancock Funds and LIFE STORAGE INC 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.

LIFE STORAGE INC

Pair trading matchups for LIFE STORAGE

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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