Correlation Between John Hancock and Ab Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ab Global 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 John Hancock and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Ab Global Bond, you can compare the effects of market volatilities on John Hancock and Ab Global 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 John Hancock with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ab Global.
Diversification Opportunities for John Hancock and Ab Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and ANAZX is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and John Hancock 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 John Hancock Financial are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of John Hancock i.e., John Hancock and Ab Global go up and down completely randomly.
Pair Corralation between John Hancock and Ab Global
Considering the 90-day investment horizon John Hancock Financial is expected to under-perform the Ab Global. In addition to that, John Hancock is 9.63 times more volatile than Ab Global Bond. It trades about -0.25 of its total potential returns per unit of risk. Ab Global Bond is currently generating about -0.57 per unit of volatility. If you would invest 696.00 in Ab Global Bond on October 12, 2024 and sell it today you would lose (13.00) from holding Ab Global Bond or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Ab Global Bond
Performance |
| Timeline |
| John Hancock Financial |
| Ab Global Bond |
John Hancock and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ab Global
The main advantage of trading using opposite John Hancock and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Ab Global vs. Financial Industries Fund | Ab Global vs. Blackrock Financial Institutions | Ab Global vs. John Hancock Financial | Ab Global vs. Angel Oak 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |