Correlation Between John Hancock and Mfs Intermediate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs Intermediate 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 Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Preferred and Mfs Intermediate High, you can compare the effects of market volatilities on John Hancock and Mfs Intermediate 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 Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs Intermediate.
Diversification Opportunities for John Hancock and Mfs Intermediate
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Mfs is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Preferred and Mfs Intermediate High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intermediate High 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 Preferred are associated (or correlated) with Mfs Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intermediate High has no effect on the direction of John Hancock i.e., John Hancock and Mfs Intermediate go up and down completely randomly.
Pair Corralation between John Hancock and Mfs Intermediate
Considering the 90-day investment horizon John Hancock Preferred is expected to generate 1.31 times more return on investment than Mfs Intermediate. However, John Hancock is 1.31 times more volatile than Mfs Intermediate High. It trades about 0.09 of its potential returns per unit of risk. Mfs Intermediate High is currently generating about 0.08 per unit of risk. If you would invest 1,316 in John Hancock Preferred on August 31, 2024 and sell it today you would earn a total of 449.00 from holding John Hancock Preferred or generate 34.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Preferred vs. Mfs Intermediate High
Performance |
| Timeline |
| John Hancock Preferred |
| Mfs Intermediate High |
John Hancock and Mfs Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs Intermediate
The main advantage of trading using opposite John Hancock and Mfs Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs Intermediate 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 Intermediate will offset losses from the drop in Mfs Intermediate's long position.| John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Premium | John Hancock vs. John Hancock Tax |
| Mfs Intermediate vs. Credit Suisse High | Mfs Intermediate vs. Western Asset High | Mfs Intermediate vs. Western Asset Global | Mfs Intermediate vs. Allspring Income Opportunities |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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