Correlation Between John Hancock and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mainstay Epoch 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 Mainstay Epoch 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 Mainstay Epoch Global, you can compare the effects of market volatilities on John Hancock and Mainstay Epoch 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 Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mainstay Epoch.
Diversification Opportunities for John Hancock and Mainstay Epoch
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Mainstay is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global 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 Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of John Hancock i.e., John Hancock and Mainstay Epoch go up and down completely randomly.
Pair Corralation between John Hancock and Mainstay Epoch
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.6 times more return on investment than Mainstay Epoch. However, John Hancock is 2.6 times more volatile than Mainstay Epoch Global. It trades about 0.11 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.13 per unit of risk. If you would invest 2,366 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 1,554 from holding John Hancock Financial or generate 65.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Mainstay Epoch Global
Performance |
| Timeline |
| John Hancock Financial |
| Mainstay Epoch Global |
John Hancock and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mainstay Epoch
The main advantage of trading using opposite John Hancock and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch'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 |
| Mainstay Epoch vs. Bbh Intermediate Municipal | Mainstay Epoch vs. Lind Capital Partners | Mainstay Epoch vs. Bbh Intermediate Municipal | Mainstay Epoch vs. Blrc Sgy Mnp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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