Correlation Between John Hancock and Voya Large
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Large 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 Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Government and Voya Large Cap, you can compare the effects of market volatilities on John Hancock and Voya Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Large.
Diversification Opportunities for John Hancock and Voya Large
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Voya is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Voya Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Large Cap 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 Government are associated (or correlated) with Voya Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Large Cap has no effect on the direction of John Hancock i.e., John Hancock and Voya Large go up and down completely randomly.
Pair Corralation between John Hancock and Voya Large
Assuming the 90 days horizon John Hancock Government is expected to generate 0.21 times more return on investment than Voya Large. However, John Hancock Government is 4.81 times less risky than Voya Large. It trades about -0.05 of its potential returns per unit of risk. Voya Large Cap is currently generating about -0.03 per unit of risk. If you would invest 797.00 in John Hancock Government on January 7, 2025 and sell it today you would lose (15.00) from holding John Hancock Government or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.21% |
| Values | Daily Returns |
John Hancock Government vs. Voya Large Cap
Performance |
| Timeline |
| John Hancock Government |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Voya Large Cap |
John Hancock and Voya Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Large
The main advantage of trading using opposite John Hancock and Voya Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Large 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 Large will offset losses from the drop in Voya Large's long position.| John Hancock vs. Amg Managers Centersquare | John Hancock vs. Nexpoint Real Estate | John Hancock vs. Real Estate Ultrasector | John Hancock vs. Redwood Real Estate |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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