Correlation Between Perficient and John Hancock

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

Diversification Opportunities for Perficient and John Hancock

0.92
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Perficient and JLKLX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Perficient 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 Perficient 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 Perficient 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 Perficient i.e., Perficient and John Hancock go up and down completely randomly.

Pair Corralation between Perficient and John Hancock

Given the investment horizon of 90 days Perficient is expected to under-perform the John Hancock. In addition to that, Perficient is 2.17 times more volatile than John Hancock Funds. It trades about -0.06 of its total potential returns per unit of risk. John Hancock Funds is currently generating about -0.13 per unit of volatility. If you would invest  1,336  in John Hancock Funds on April 4, 2022 and sell it today you would lose (286.00)  from holding John Hancock Funds or give up 21.41% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Perficient  vs.  John Hancock Funds

 Performance (%) 
      Timeline 
Perficient 
Perficient Performance
0 of 100
Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perficient 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

Perficient and John Hancock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Perficient and John Hancock

The main advantage of trading using opposite Perficient and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perficient 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.
The idea behind Perficient 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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