Correlation Between Ab Value and John Hancock
Can any of the company-specific risk be diversified away by investing in both Ab Value 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 Ab Value and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and John Hancock Income, you can compare the effects of market volatilities on Ab Value 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 Ab Value with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and John Hancock.
Diversification Opportunities for Ab Value and John Hancock
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ABVCX and John is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Ab Value 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 Ab Value Fund 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 Income has no effect on the direction of Ab Value i.e., Ab Value and John Hancock go up and down completely randomly.
Pair Corralation between Ab Value and John Hancock
Assuming the 90 days horizon Ab Value Fund is expected to generate 3.54 times more return on investment than John Hancock. However, Ab Value is 3.54 times more volatile than John Hancock Income. It trades about 0.4 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.13 per unit of risk. If you would invest 1,931 in Ab Value Fund on September 1, 2024 and sell it today you would earn a total of 139.00 from holding Ab Value Fund or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Value Fund vs. John Hancock Income
Performance |
| Timeline |
| Ab Value Fund |
| John Hancock Income |
Ab Value and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and John Hancock
The main advantage of trading using opposite Ab Value and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value 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.| Ab Value vs. Ab Global E | Ab Value vs. Ab Global E | Ab Value vs. Ab Global E | Ab Value vs. Ab Minnesota Portfolio |
| John Hancock vs. Fidelity Advisor Gold | John Hancock vs. International Investors Gold | John Hancock vs. Europac Gold Fund | John Hancock vs. James Balanced Golden |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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