Correlation Between John Hancock and Vanguard Extended
Can any of the company-specific risk be diversified away by investing in both John Hancock and Vanguard Extended 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 Vanguard Extended 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 Vanguard Extended Market, you can compare the effects of market volatilities on John Hancock and Vanguard Extended 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 Vanguard Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Vanguard Extended.
Diversification Opportunities for John Hancock and Vanguard Extended
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Vanguard is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Var and Vanguard Extended Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Extended Market 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 Vanguard Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Extended Market has no effect on the direction of John Hancock i.e., John Hancock and Vanguard Extended go up and down completely randomly.
Pair Corralation between John Hancock and Vanguard Extended
Assuming the 90 days horizon John Hancock Var is expected to under-perform the Vanguard Extended. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Var is 1.19 times less risky than Vanguard Extended. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Vanguard Extended Market is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 34,449 in Vanguard Extended Market on September 5, 2024 and sell it today you would earn a total of 3,854 from holding Vanguard Extended Market or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Var vs. Vanguard Extended Market
Performance |
| Timeline |
| John Hancock Var |
| Vanguard Extended Market |
John Hancock and Vanguard Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Vanguard Extended
The main advantage of trading using opposite John Hancock and Vanguard Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Vanguard Extended 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 Vanguard Extended will offset losses from the drop in Vanguard Extended'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 |
| Vanguard Extended vs. Highland Longshort Healthcare | Vanguard Extended vs. Health Biotchnology Portfolio | Vanguard Extended vs. John Hancock Var | Vanguard Extended vs. Baron Health Care |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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