Correlation Between Allianzgi Diversified and John Hancock
Can any of the company-specific risk be diversified away by investing in both Allianzgi Diversified 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 Allianzgi Diversified and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Diversified Income and John Hancock Investors, you can compare the effects of market volatilities on Allianzgi Diversified 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 Allianzgi Diversified with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Diversified and John Hancock.
Diversification Opportunities for Allianzgi Diversified and John Hancock
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and John is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Diversified Income and John Hancock Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investors and Allianzgi Diversified 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 Allianzgi Diversified Income 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 Investors has no effect on the direction of Allianzgi Diversified i.e., Allianzgi Diversified and John Hancock go up and down completely randomly.
Pair Corralation between Allianzgi Diversified and John Hancock
Considering the 90-day investment horizon Allianzgi Diversified Income is expected to generate 2.35 times more return on investment than John Hancock. However, Allianzgi Diversified is 2.35 times more volatile than John Hancock Investors. It trades about 0.16 of its potential returns per unit of risk. John Hancock Investors is currently generating about 0.11 per unit of risk. If you would invest 2,087 in Allianzgi Diversified Income on August 26, 2024 and sell it today you would earn a total of 132.00 from holding Allianzgi Diversified Income or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Diversified Income vs. John Hancock Investors
Performance |
| Timeline |
| Allianzgi Diversified |
| John Hancock Investors |
Allianzgi Diversified and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Diversified and John Hancock
The main advantage of trading using opposite Allianzgi Diversified and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Diversified 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.| Allianzgi Diversified vs. Brookfield Business Corp | Allianzgi Diversified vs. Elysee Development Corp | Allianzgi Diversified vs. DWS Municipal Income | Allianzgi Diversified vs. Blackrock Munivest |
| John Hancock vs. DTF Tax Free | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. Invesco High Income |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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