Correlation Between American Balanced and John Hancock
Can any of the company-specific risk be diversified away by investing in both American Balanced 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 American Balanced and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Balanced and John Hancock Tax Advantaged, you can compare the effects of market volatilities on American Balanced 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 American Balanced with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and John Hancock.
Diversification Opportunities for American Balanced and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and John Hancock Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and American Balanced 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 American Balanced 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 Tax has no effect on the direction of American Balanced i.e., American Balanced and John Hancock go up and down completely randomly.
Pair Corralation between American Balanced and John Hancock
If you would invest 3,198 in American Balanced on November 3, 2024 and sell it today you would earn a total of 335.00 from holding American Balanced or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
American Balanced vs. John Hancock Tax Advantaged
Performance |
| Timeline |
| American Balanced |
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Balanced and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and John Hancock
The main advantage of trading using opposite American Balanced and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced 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.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund Of |
| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
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 the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |