Correlation Between John Hancock and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both John Hancock and Baillie Gifford 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 Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Var and Baillie Gifford Health, you can compare the effects of market volatilities on John Hancock and Baillie Gifford 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 Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Baillie Gifford.
Diversification Opportunities for John Hancock and Baillie Gifford
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Baillie is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Var and Baillie Gifford Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford Health 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 Var are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford Health has no effect on the direction of John Hancock i.e., John Hancock and Baillie Gifford go up and down completely randomly.
Pair Corralation between John Hancock and Baillie Gifford
Assuming the 90 days horizon John Hancock Var is expected to under-perform the Baillie Gifford. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Var is 1.02 times less risky than Baillie Gifford. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Baillie Gifford Health is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Baillie Gifford Health on September 5, 2024 and sell it today you would lose (44.00) from holding Baillie Gifford Health or give up 7.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Var vs. Baillie Gifford Health
Performance |
Timeline |
John Hancock Var |
Baillie Gifford Health |
John Hancock and Baillie Gifford Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Baillie Gifford
The main advantage of trading using opposite John Hancock and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.John Hancock vs. Virtus Dfa 2040 | John Hancock vs. Transamerica Asset Allocation | John Hancock vs. T Rowe Price | John Hancock vs. Legg Mason Partners |
Baillie Gifford vs. Fidelity Series Government | Baillie Gifford vs. Blackrock Government Bond | Baillie Gifford vs. Us Government Securities | Baillie Gifford vs. Ab Government Exchange |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |