Correlation Between Ab Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Global 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 Global Bond and John Hancock Government, you can compare the effects of market volatilities on Ab Global 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 Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and John Hancock.
Diversification Opportunities for Ab Global and John Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ANAZX and John is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Bond and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Ab Global 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 Global Bond 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 Government has no effect on the direction of Ab Global i.e., Ab Global and John Hancock go up and down completely randomly.
Pair Corralation between Ab Global and John Hancock
Assuming the 90 days horizon Ab Global Bond is expected to generate 0.59 times more return on investment than John Hancock. However, Ab Global Bond is 1.69 times less risky than John Hancock. It trades about 0.09 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.05 per unit of risk. If you would invest 689.00 in Ab Global Bond on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Ab Global Bond or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global Bond vs. John Hancock Government
Performance |
| Timeline |
| Ab Global Bond |
| John Hancock Government |
Ab Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and John Hancock
The main advantage of trading using opposite Ab Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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 Global vs. Vanguard Total International | Ab Global vs. Dfa Five Year Global | Ab Global vs. HUMANA INC | Ab Global vs. Aquagold International |
| John Hancock vs. Us Global Investors | John Hancock vs. T Rowe Price | John Hancock vs. Ab Global Bond | John Hancock vs. Barings Global Floating |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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