Correlation Between John Hancock and Mfs Prudent
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs Prudent 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 Prudent 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 Prudent Investor, you can compare the effects of market volatilities on John Hancock and Mfs Prudent 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 Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs Prudent.
Diversification Opportunities for John Hancock and Mfs Prudent
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Mfs is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Mfs Prudent Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Prudent Investor 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 Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Prudent Investor has no effect on the direction of John Hancock i.e., John Hancock and Mfs Prudent go up and down completely randomly.
Pair Corralation between John Hancock and Mfs Prudent
Considering the 90-day investment horizon John Hancock Financial is expected to generate 4.98 times more return on investment than Mfs Prudent. However, John Hancock is 4.98 times more volatile than Mfs Prudent Investor. It trades about 0.33 of its potential returns per unit of risk. Mfs Prudent Investor is currently generating about -0.03 per unit of risk. If you would invest 3,414 in John Hancock Financial on August 31, 2024 and sell it today you would earn a total of 514.00 from holding John Hancock Financial or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Mfs Prudent Investor
Performance |
| Timeline |
| John Hancock Financial |
| Mfs Prudent Investor |
John Hancock and Mfs Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs Prudent
The main advantage of trading using opposite John Hancock and Mfs Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs Prudent 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 Prudent will offset losses from the drop in Mfs Prudent'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 Prudent vs. Fidelity Advisor Financial | Mfs Prudent vs. John Hancock Financial | Mfs Prudent vs. Transamerica Financial Life | Mfs Prudent vs. Prudential Jennison 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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