Correlation Between Barings Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Barings Global and John Hancock 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 Barings Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and John Hancock Government, you can compare the effects of market volatilities on Barings Global and John Hancock 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 Barings Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and John Hancock.
Diversification Opportunities for Barings Global and John Hancock
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and John is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Barings Global 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 Barings Global Floating are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Government has no effect on the direction of Barings Global i.e., Barings Global and John Hancock go up and down completely randomly.
Pair Corralation between Barings Global and John Hancock
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.29 times more return on investment than John Hancock. However, Barings Global Floating is 3.51 times less risky than John Hancock. It trades about 0.33 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.05 per unit of risk. If you would invest 871.00 in Barings Global Floating on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Barings Global Floating or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Barings Global Floating vs. John Hancock Government
Performance |
| Timeline |
| Barings Global Floating |
| John Hancock Government |
Barings Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and John Hancock
The main advantage of trading using opposite Barings Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Barings Global vs. Floating Rate Fund | Barings Global vs. Lord Abbett Inv | Barings Global vs. HUMANA INC | Barings Global vs. Aquagold International |
| John Hancock vs. Us Global Investors | John Hancock vs. T Rowe Price | John Hancock vs. Ab Global Bond | John Hancock vs. Barings Global Floating |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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