Correlation Between John Hancock and Mfs International
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs International 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 International 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 International New, you can compare the effects of market volatilities on John Hancock and Mfs International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs International.
Diversification Opportunities for John Hancock and Mfs International
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Mfs is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of John Hancock i.e., John Hancock and Mfs International go up and down completely randomly.
Pair Corralation between John Hancock and Mfs International
Considering the 90-day investment horizon John Hancock Financial is expected to generate 3.08 times more return on investment than Mfs International. However, John Hancock is 3.08 times more volatile than Mfs International New. It trades about 0.35 of its potential returns per unit of risk. Mfs International New is currently generating about -0.05 per unit of risk. If you would invest 3,411 in John Hancock Financial on September 2, 2024 and sell it today you would earn a total of 529.00 from holding John Hancock Financial or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Mfs International New
Performance |
| Timeline |
| John Hancock Financial |
| Mfs International New |
John Hancock and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs International
The main advantage of trading using opposite John Hancock and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs International 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 International will offset losses from the drop in Mfs International'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 International vs. Angel Oak Financial | Mfs International vs. Gabelli Global Financial | Mfs International vs. John Hancock Financial | Mfs International vs. Transamerica Financial Life |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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