Correlation Between Alliancebernstein and John Hancock
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein 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 Alliancebernstein and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein Global High and John Hancock Global, you can compare the effects of market volatilities on Alliancebernstein 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 Alliancebernstein with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and John Hancock.
Diversification Opportunities for Alliancebernstein and John Hancock
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alliancebernstein and John is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Alliancebernstein 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 Alliancebernstein Global High 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 Global has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and John Hancock go up and down completely randomly.
Pair Corralation between Alliancebernstein and John Hancock
Considering the 90-day investment horizon Alliancebernstein Global High is expected to generate 1.07 times more return on investment than John Hancock. However, Alliancebernstein is 1.07 times more volatile than John Hancock Global. It trades about 0.09 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.08 per unit of risk. If you would invest 817.00 in Alliancebernstein Global High on September 13, 2024 and sell it today you would earn a total of 272.00 from holding Alliancebernstein Global High or generate 33.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. John Hancock Global
Performance |
| Timeline |
| Alliancebernstein |
| John Hancock Global |
Alliancebernstein and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and John Hancock
The main advantage of trading using opposite Alliancebernstein and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein 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.| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
| John Hancock vs. Alliancebernstein Global High | John Hancock vs. T Rowe Price | John Hancock vs. Needham Aggressive Growth | John Hancock vs. Western Asset High |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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