Correlation Between John Hancock and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both John Hancock and Janus Henderson 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 Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Variable and Janus Henderson Research, you can compare the effects of market volatilities on John Hancock and Janus Henderson 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 Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Janus Henderson.
Diversification Opportunities for John Hancock and Janus Henderson
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Janus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Janus Henderson Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Research 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 Variable are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Research has no effect on the direction of John Hancock i.e., John Hancock and Janus Henderson go up and down completely randomly.
Pair Corralation between John Hancock and Janus Henderson
Assuming the 90 days horizon John Hancock Variable is expected to generate 0.75 times more return on investment than Janus Henderson. However, John Hancock Variable is 1.33 times less risky than Janus Henderson. It trades about 0.0 of its potential returns per unit of risk. Janus Henderson Research is currently generating about -0.02 per unit of risk. If you would invest 2,068 in John Hancock Variable on November 27, 2024 and sell it today you would lose (2.00) from holding John Hancock Variable or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Janus Henderson Research
Performance |
| Timeline |
| John Hancock Variable |
| Janus Henderson Research |
John Hancock and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Janus Henderson
The main advantage of trading using opposite John Hancock and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| John Hancock vs. Manning Napier Diversified | John Hancock vs. Diversified Bond Fund | John Hancock vs. Guidepath Conservative Income | John Hancock vs. Prudential Core Conservative |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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