Correlation Between Picc Prop and John Hancock

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Picc Prop 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 Picc Prop and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Picc Prop Casualty and John Hancock Funds, you can compare the effects of market volatilities on Picc Prop 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 Picc Prop with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Picc Prop and John Hancock.

Diversification Opportunities for Picc Prop and John Hancock

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between PPCCF and JLKLX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Picc Prop Casualty 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 Picc Prop 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 Picc Prop Casualty 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 Picc Prop i.e., Picc Prop and John Hancock go up and down completely randomly.

Pair Corralation between Picc Prop and John Hancock

Assuming the 90 days horizon Picc Prop Casualty is expected to generate 1.54 times more return on investment than John Hancock. However, Picc Prop is 1.54 times more volatile than John Hancock Funds. It trades about 0.04 of its potential returns per unit of risk. John Hancock Funds is currently generating about 0.02 per unit of risk. If you would invest  75.00  in Picc Prop Casualty on April 4, 2022 and sell it today you would earn a total of  26.00  from holding Picc Prop Casualty or generate 34.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.0%
ValuesDaily Returns

Picc Prop Casualty  vs.  John Hancock Funds

 Performance (%) 
      Timeline 
Picc Prop Casualty 
PPCCF Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Picc Prop Casualty are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish fundamental indicators, Picc Prop may actually be approaching a critical reversion point that can send shares even higher in August 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0599
Payout Ratio
0.38
Last Split Factor
3:2
Forward Annual Dividend Rate
0.06
Dividend Date
2017-08-22
Ex Dividend Date
2022-06-23
Last Split Date
2018-06-27

PPCCF 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

Picc Prop and John Hancock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Picc Prop and John Hancock

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

Picc Prop Casualty

Pair trading matchups for Picc Prop

The idea behind Picc Prop Casualty 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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
CEO Directory
Screen CEOs from public companies around the world
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go