Correlation Between John Hancock and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Aberdeen Global 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 Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Tax Advantaged and Aberdeen Global IF, you can compare the effects of market volatilities on John Hancock and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Aberdeen Global.
Diversification Opportunities for John Hancock and Aberdeen Global
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and Aberdeen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Aberdeen Global IF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global IF 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 Tax Advantaged are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global IF has no effect on the direction of John Hancock i.e., John Hancock and Aberdeen Global go up and down completely randomly.
Pair Corralation between John Hancock and Aberdeen Global
Considering the 90-day investment horizon John Hancock Tax Advantaged is expected to generate 0.36 times more return on investment than Aberdeen Global. However, John Hancock Tax Advantaged is 2.78 times less risky than Aberdeen Global. It trades about 0.29 of its potential returns per unit of risk. Aberdeen Global IF is currently generating about 0.05 per unit of risk. If you would invest 457.00 in John Hancock Tax Advantaged on August 31, 2024 and sell it today you would earn a total of 29.00 from holding John Hancock Tax Advantaged or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
John Hancock Tax Advantaged vs. Aberdeen Global IF
Performance |
| Timeline |
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aberdeen Global IF |
John Hancock and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Aberdeen Global
The main advantage of trading using opposite John Hancock and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
| Aberdeen Global vs. Aberdeen Australia Ef | Aberdeen Global vs. Western Asset Emerging | Aberdeen Global vs. Cbre Clarion Global | Aberdeen Global vs. Credit Suisse High |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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