Correlation Between Global Bond and John Hancock
Can any of the company-specific risk be diversified away by investing in both Global Bond 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 Global Bond and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Bond Fund and John Hancock Money, you can compare the effects of market volatilities on Global Bond 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 Global Bond with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Bond and John Hancock.
Diversification Opportunities for Global Bond and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Bond Fund and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Global Bond 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 Global Bond 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 Money has no effect on the direction of Global Bond i.e., Global Bond and John Hancock go up and down completely randomly.
Pair Corralation between Global Bond and John Hancock
If you would invest 863.00 in Global Bond Fund on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Global Bond Fund or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Bond Fund vs. John Hancock Money
Performance |
| Timeline |
| Global Bond Fund |
| John Hancock Money |
Global Bond and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Bond and John Hancock
The main advantage of trading using opposite Global Bond and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Bond 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.| Global Bond vs. Mid Cap Value | Global Bond vs. Equity Growth Fund | Global Bond vs. Income Growth Fund | Global Bond vs. Diversified Bond Fund |
| John Hancock vs. Mesirow Financial Small | John Hancock vs. Fidelity Advisor Financial | John Hancock vs. Financials Ultrasector Profund | John Hancock vs. Prudential Jennison Financial |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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