Correlation Between John Hancock and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs Blended 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 Mfs Blended 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 Mfs Blended Research, you can compare the effects of market volatilities on John Hancock and Mfs Blended 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 Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs Blended.
Diversification Opportunities for John Hancock and Mfs Blended
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Mfs is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research 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 Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of John Hancock i.e., John Hancock and Mfs Blended go up and down completely randomly.
Pair Corralation between John Hancock and Mfs Blended
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.2 times more return on investment than Mfs Blended. However, John Hancock is 1.2 times more volatile than Mfs Blended Research. It trades about 0.17 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.07 per unit of risk. If you would invest 2,754 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 1,186 from holding John Hancock Financial or generate 43.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Mfs Blended Research
Performance |
| Timeline |
| John Hancock Financial |
| Mfs Blended Research |
John Hancock and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs Blended
The main advantage of trading using opposite John Hancock and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs Blended 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 Mfs Blended will offset losses from the drop in Mfs Blended'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 |
| Mfs Blended vs. Templeton Developing Markets | Mfs Blended vs. Massmutual Select Diversified | Mfs Blended vs. The Hartford Emerging | Mfs Blended vs. Mondrian Emerging Markets |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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