Correlation Between Transamerica Funds and John Hancock
Can any of the company-specific risk be diversified away by investing in both Transamerica Funds 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 Transamerica Funds and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Funds and John Hancock Government, you can compare the effects of market volatilities on Transamerica Funds 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 Transamerica Funds with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Funds and John Hancock.
Diversification Opportunities for Transamerica Funds and John Hancock
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transamerica and John is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Funds 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 Transamerica Funds 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 Transamerica Funds 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 Transamerica Funds i.e., Transamerica Funds and John Hancock go up and down completely randomly.
Pair Corralation between Transamerica Funds and John Hancock
Assuming the 90 days horizon Transamerica Funds is expected to generate 0.39 times more return on investment than John Hancock. However, Transamerica Funds is 2.57 times less risky than John Hancock. It trades about 0.13 of its potential returns per unit of risk. John Hancock Government is currently generating about -0.07 per unit of risk. If you would invest 99.00 in Transamerica Funds on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Transamerica Funds or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Funds vs. John Hancock Government
Performance |
| Timeline |
| Transamerica Funds |
| John Hancock Government |
Transamerica Funds and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Funds and John Hancock
The main advantage of trading using opposite Transamerica Funds and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Funds 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.| Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard 500 Index | Transamerica Funds vs. Vanguard Total Stock | Transamerica Funds vs. Vanguard Total Stock |
| John Hancock vs. First American Funds | John Hancock vs. Wt Mutual Fund | John Hancock vs. Transamerica Funds | John Hancock vs. Hsbc Treasury Money |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |