Correlation Between Janus High-yield and John Hancock
Can any of the company-specific risk be diversified away by investing in both Janus High-yield and John Hancock 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 Janus High-yield and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus High Yield Fund and John Hancock Strategic, you can compare the effects of market volatilities on Janus High-yield and John Hancock 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 Janus High-yield with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus High-yield and John Hancock.
Diversification Opportunities for Janus High-yield and John Hancock
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Janus and John is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Janus High Yield Fund and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Janus High-yield 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 Janus High Yield Fund are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Strategic has no effect on the direction of Janus High-yield i.e., Janus High-yield and John Hancock go up and down completely randomly.
Pair Corralation between Janus High-yield and John Hancock
Assuming the 90 days horizon Janus High Yield Fund is expected to generate 0.24 times more return on investment than John Hancock. However, Janus High Yield Fund is 4.15 times less risky than John Hancock. It trades about 0.24 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.05 per unit of risk. If you would invest 729.00 in Janus High Yield Fund on October 24, 2024 and sell it today you would earn a total of 8.00 from holding Janus High Yield Fund or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Janus High Yield Fund vs. John Hancock Strategic
Performance |
| Timeline |
| Janus High Yield |
| John Hancock Strategic |
Janus High-yield and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus High-yield and John Hancock
The main advantage of trading using opposite Janus High-yield and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus High-yield position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Janus High-yield vs. Janus Henderson High Yield | Janus High-yield vs. Janus Flexible Bond | Janus High-yield vs. Intech Managed Volatility | Janus High-yield vs. Janus Trarian Fund |
| John Hancock vs. Smead Value Fund | John Hancock vs. Qs Large Cap | John Hancock vs. Vest Large Cap | John Hancock vs. Tax Managed Large Cap |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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