Correlation Between Voya High and John Hancock
Can any of the company-specific risk be diversified away by investing in both Voya High 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 Voya High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and John Hancock Strategic, you can compare the effects of market volatilities on Voya High 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 Voya High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and John Hancock.
Diversification Opportunities for Voya High and John Hancock
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and John is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Voya High 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 Voya High Yield 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 Strategic has no effect on the direction of Voya High i.e., Voya High and John Hancock go up and down completely randomly.
Pair Corralation between Voya High and John Hancock
Assuming the 90 days horizon Voya High Yield is expected to generate 0.07 times more return on investment than John Hancock. However, Voya High Yield is 13.35 times less risky than John Hancock. It trades about -0.37 of its potential returns per unit of risk. John Hancock Strategic is currently generating about -0.18 per unit of risk. If you would invest 882.00 in Voya High Yield on October 9, 2024 and sell it today you would lose (10.00) from holding Voya High Yield or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya High Yield vs. John Hancock Strategic
Performance |
| Timeline |
| Voya High Yield |
| John Hancock Strategic |
Voya High and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and John Hancock
The main advantage of trading using opposite Voya High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High 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.| Voya High vs. Barings Global Floating | Voya High vs. Ms Global Fixed | Voya High vs. Qs Global Equity | Voya High vs. Asg Global Alternatives |
| John Hancock vs. Franklin Adjustable Government | John Hancock vs. T Rowe Price | John Hancock vs. Gurtin California Muni | John Hancock vs. Fidelity California 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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