Correlation Between John Hancock and Mainstay High
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mainstay High 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 Mainstay High 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 Mainstay High Yield, you can compare the effects of market volatilities on John Hancock and Mainstay High 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 Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mainstay High.
Diversification Opportunities for John Hancock and Mainstay High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Mainstay is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of John Hancock i.e., John Hancock and Mainstay High go up and down completely randomly.
Pair Corralation between John Hancock and Mainstay High
Assuming the 90 days horizon John Hancock Funds is expected to generate 1.31 times more return on investment than Mainstay High. However, John Hancock is 1.31 times more volatile than Mainstay High Yield. It trades about 0.12 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.11 per unit of risk. If you would invest 957.00 in John Hancock Funds on September 12, 2024 and sell it today you would earn a total of 167.00 from holding John Hancock Funds or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Funds vs. Mainstay High Yield
Performance |
| Timeline |
| John Hancock Funds |
| Mainstay High Yield |
John Hancock and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mainstay High
The main advantage of trading using opposite John Hancock and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mainstay High 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| John Hancock vs. Champlain Small | John Hancock vs. Guidemark Smallmid Cap | John Hancock vs. Kinetics Small Cap | John Hancock vs. Mutual Of America |
| Mainstay High vs. Fa 529 Aggressive | Mainstay High vs. Volumetric Fund Volumetric | Mainstay High vs. Abr 7525 Volatility | Mainstay High vs. Aam Select Income |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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