Correlation Between John Hancock and Versus Capital
Can any of the company-specific risk be diversified away by investing in both John Hancock and Versus Capital 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 Versus Capital 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 Versus Capital Multi Manager, you can compare the effects of market volatilities on John Hancock and Versus Capital 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 Versus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Versus Capital.
Diversification Opportunities for John Hancock and Versus Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Versus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Versus Capital Multi Manager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Versus Capital Multi 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 Versus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Versus Capital Multi has no effect on the direction of John Hancock i.e., John Hancock and Versus Capital go up and down completely randomly.
Pair Corralation between John Hancock and Versus Capital
Assuming the 90 days horizon John Hancock Variable is expected to under-perform the Versus Capital. In addition to that, John Hancock is 4.73 times more volatile than Versus Capital Multi Manager. It trades about 0.0 of its total potential returns per unit of risk. Versus Capital Multi Manager is currently generating about 0.17 per unit of volatility. If you would invest 2,437 in Versus Capital Multi Manager on November 27, 2024 and sell it today you would earn a total of 13.00 from holding Versus Capital Multi Manager or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Versus Capital Multi Manager
Performance |
| Timeline |
| John Hancock Variable |
| Versus Capital Multi |
John Hancock and Versus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Versus Capital
The main advantage of trading using opposite John Hancock and Versus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Versus Capital 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 Versus Capital will offset losses from the drop in Versus Capital'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 |
| Versus Capital vs. Lord Abbett Intermediate | Versus Capital vs. Federated Government Income | Versus Capital vs. Us Government Securities | Versus Capital 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |