Correlation Between CBH and John Hancock
Can any of the company-specific risk be diversified away by investing in both CBH 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 CBH and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and John Hancock Investors, you can compare the effects of market volatilities on CBH 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 CBH with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and John Hancock.
Diversification Opportunities for CBH and John Hancock
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CBH and John is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CBH and John Hancock Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investors and CBH 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 CBH 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 Investors has no effect on the direction of CBH i.e., CBH and John Hancock go up and down completely randomly.
Pair Corralation between CBH and John Hancock
If you would invest 1,385 in John Hancock Investors on August 26, 2024 and sell it today you would earn a total of 26.00 from holding John Hancock Investors or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.27% |
| Values | Daily Returns |
CBH vs. John Hancock Investors
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Investors |
CBH and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and John Hancock
The main advantage of trading using opposite CBH and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH 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.| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
| John Hancock vs. DTF Tax Free | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. Invesco High Income |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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