Correlation Between John Hancock and Voya Cbre
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Cbre 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 Cbre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Enduring and Voya Cbre Global, you can compare the effects of market volatilities on John Hancock and Voya Cbre 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 Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Cbre.
Diversification Opportunities for John Hancock and Voya Cbre
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Voya is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Enduring and Voya Cbre Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Cbre Global 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 Enduring are associated (or correlated) with Voya Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Cbre Global has no effect on the direction of John Hancock i.e., John Hancock and Voya Cbre go up and down completely randomly.
Pair Corralation between John Hancock and Voya Cbre
Assuming the 90 days horizon John Hancock is expected to generate 1.04 times less return on investment than Voya Cbre. In addition to that, John Hancock is 1.01 times more volatile than Voya Cbre Global. It trades about 0.23 of its total potential returns per unit of risk. Voya Cbre Global is currently generating about 0.24 per unit of volatility. If you would invest 1,356 in Voya Cbre Global on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Voya Cbre Global or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Enduring vs. Voya Cbre Global
Performance |
| Timeline |
| John Hancock Enduring |
| Voya Cbre Global |
John Hancock and Voya Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Cbre
The main advantage of trading using opposite John Hancock and Voya Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Cbre 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 Cbre will offset losses from the drop in Voya Cbre's long position.| John Hancock vs. Nasdaq 100 Index Fund | John Hancock vs. Issachar Fund Class | John Hancock vs. T Rowe Price | John Hancock vs. Nova Fund Class |
| Voya Cbre vs. John Hancock Enduring | Voya Cbre vs. Fidelity Infrastructure | Voya Cbre vs. Invesco Global Infrastructure | Voya Cbre vs. Mainstay Income Builder |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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