Correlation Between John Hancock and Voya Morgan
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Morgan 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 Voya Morgan 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 Voya Morgan Stanley, you can compare the effects of market volatilities on John Hancock and Voya Morgan 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 Voya Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Morgan.
Diversification Opportunities for John Hancock and Voya Morgan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Voya is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Voya Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Morgan Stanley 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 Voya Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Morgan Stanley has no effect on the direction of John Hancock i.e., John Hancock and Voya Morgan go up and down completely randomly.
Pair Corralation between John Hancock and Voya Morgan
Assuming the 90 days horizon John Hancock Funds is expected to generate 0.77 times more return on investment than Voya Morgan. However, John Hancock Funds is 1.31 times less risky than Voya Morgan. It trades about 0.34 of its potential returns per unit of risk. Voya Morgan Stanley is currently generating about 0.26 per unit of risk. If you would invest 1,097 in John Hancock Funds on September 4, 2024 and sell it today you would earn a total of 26.00 from holding John Hancock Funds or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
John Hancock Funds vs. Voya Morgan Stanley
Performance |
| Timeline |
| John Hancock Funds |
| Voya Morgan Stanley |
John Hancock and Voya Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Morgan
The main advantage of trading using opposite John Hancock and Voya Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Morgan 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 Voya Morgan will offset losses from the drop in Voya Morgan's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Voya Morgan vs. John Hancock Funds | Voya Morgan vs. Qs Moderate Growth | Voya Morgan vs. T Rowe Price | Voya Morgan vs. T Rowe Price |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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