Correlation Between John Hancock and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Bbh Intermediate 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 Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Bbh Intermediate Municipal, you can compare the effects of market volatilities on John Hancock and Bbh Intermediate 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 Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Bbh Intermediate.
Diversification Opportunities for John Hancock and Bbh Intermediate
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Bbh is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun 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 Disciplined are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of John Hancock i.e., John Hancock and Bbh Intermediate go up and down completely randomly.
Pair Corralation between John Hancock and Bbh Intermediate
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 4.25 times more return on investment than Bbh Intermediate. However, John Hancock is 4.25 times more volatile than Bbh Intermediate Municipal. It trades about 0.21 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.13 per unit of risk. If you would invest 2,615 in John Hancock Disciplined on August 29, 2024 and sell it today you would earn a total of 135.00 from holding John Hancock Disciplined or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Disciplined vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| John Hancock Disciplined |
| Bbh Intermediate Mun |
John Hancock and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Bbh Intermediate
The main advantage of trading using opposite John Hancock and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| John Hancock vs. Bbh Intermediate Municipal | John Hancock vs. Sterling Capital Short | John Hancock vs. Multisector Bond Sma | John Hancock vs. Rbc Bluebay Global |
| Bbh Intermediate vs. HUMANA INC | Bbh Intermediate vs. Aquagold International | Bbh Intermediate vs. Barloworld Ltd ADR | Bbh Intermediate vs. Morningstar Unconstrained Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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