Correlation Between John Hancock and Voya Solution
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Solution 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 Voya Solution 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 Voya Solution 2065, you can compare the effects of market volatilities on John Hancock and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Solution.
Diversification Opportunities for John Hancock and Voya Solution
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Voya is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Voya Solution 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2065 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2065 has no effect on the direction of John Hancock i.e., John Hancock and Voya Solution go up and down completely randomly.
Pair Corralation between John Hancock and Voya Solution
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.34 times more return on investment than Voya Solution. However, John Hancock is 2.34 times more volatile than Voya Solution 2065. It trades about 0.22 of its potential returns per unit of risk. Voya Solution 2065 is currently generating about 0.1 per unit of risk. If you would invest 3,246 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 694.00 from holding John Hancock Financial or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Voya Solution 2065
Performance |
| Timeline |
| John Hancock Financial |
| Voya Solution 2065 |
John Hancock and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Solution
The main advantage of trading using opposite John Hancock and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution'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 |
| Voya Solution vs. John Hancock Financial | Voya Solution vs. Angel Oak Financial | Voya Solution vs. Fidelity Advisor Financial | Voya Solution vs. Prudential Financial Services |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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