Correlation Between IHIT and John Hancock
Can any of the company-specific risk be diversified away by investing in both IHIT 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 IHIT and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHIT and John Hancock Income, you can compare the effects of market volatilities on IHIT 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 IHIT with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and John Hancock.
Diversification Opportunities for IHIT and John Hancock
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHIT and John is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding IHIT and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and IHIT 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 IHIT 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 Income has no effect on the direction of IHIT i.e., IHIT and John Hancock go up and down completely randomly.
Pair Corralation between IHIT and John Hancock
If you would invest 745.00 in IHIT on August 25, 2024 and sell it today you would earn a total of 0.00 from holding IHIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
IHIT vs. John Hancock Income
Performance |
| Timeline |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Income |
IHIT and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHIT and John Hancock
The main advantage of trading using opposite IHIT and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHIT 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.| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Invesco High Income | IHIT vs. Nuveen California Select |
| John Hancock vs. Invesco High Income | John Hancock vs. Blackrock Muniholdings Ny | John Hancock vs. MFS Investment Grade | John Hancock vs. Federated Premier Municipal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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