Correlation Between John Hancock and Mfs Corporate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs Corporate 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 Mfs Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Funds and Mfs Porate Bond, you can compare the effects of market volatilities on John Hancock and Mfs Corporate 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 Mfs Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs Corporate.
Diversification Opportunities for John Hancock and Mfs Corporate
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Mfs is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Mfs Porate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Porate Bond 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 Funds are associated (or correlated) with Mfs Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Porate Bond has no effect on the direction of John Hancock i.e., John Hancock and Mfs Corporate go up and down completely randomly.
Pair Corralation between John Hancock and Mfs Corporate
Assuming the 90 days horizon John Hancock Funds is expected to generate 0.93 times more return on investment than Mfs Corporate. However, John Hancock Funds is 1.08 times less risky than Mfs Corporate. It trades about 0.35 of its potential returns per unit of risk. Mfs Porate Bond is currently generating about 0.09 per unit of risk. If you would invest 1,097 in John Hancock Funds on September 5, 2024 and sell it today you would earn a total of 27.00 from holding John Hancock Funds or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Funds vs. Mfs Porate Bond
Performance |
| Timeline |
| John Hancock Funds |
| Mfs Porate Bond |
John Hancock and Mfs Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs Corporate
The main advantage of trading using opposite John Hancock and Mfs Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs Corporate 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 Mfs Corporate will offset losses from the drop in Mfs Corporate's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Balanced | John Hancock vs. Multimanager Lifestyle Aggressive |
| Mfs Corporate vs. Pgim High Yield | Mfs Corporate vs. American Century High | Mfs Corporate vs. Prudential High Yield | Mfs Corporate vs. Dunham High Yield |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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