Correlation Between John Hancock and Blackrock Munivest
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackrock Munivest 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 Blackrock Munivest 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 Blackrock Munivest, you can compare the effects of market volatilities on John Hancock and Blackrock Munivest 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 Blackrock Munivest. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackrock Munivest.
Diversification Opportunities for John Hancock and Blackrock Munivest
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Blackrock is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Preferred and Blackrock Munivest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Munivest 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 Blackrock Munivest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Munivest has no effect on the direction of John Hancock i.e., John Hancock and Blackrock Munivest go up and down completely randomly.
Pair Corralation between John Hancock and Blackrock Munivest
Considering the 90-day investment horizon John Hancock Preferred is expected to generate 1.59 times more return on investment than Blackrock Munivest. However, John Hancock is 1.59 times more volatile than Blackrock Munivest. It trades about 0.04 of its potential returns per unit of risk. Blackrock Munivest is currently generating about 0.03 per unit of risk. If you would invest 1,459 in John Hancock Preferred on November 2, 2024 and sell it today you would earn a total of 275.00 from holding John Hancock Preferred or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Preferred vs. Blackrock Munivest
Performance |
| Timeline |
| John Hancock Preferred |
| Blackrock Munivest |
John Hancock and Blackrock Munivest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackrock Munivest
The main advantage of trading using opposite John Hancock and Blackrock Munivest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackrock Munivest 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 Blackrock Munivest will offset losses from the drop in Blackrock Munivest'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 |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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