Correlation Between John Hancock and Voya Limited
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Limited 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 Limited 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 Limited Maturity, you can compare the effects of market volatilities on John Hancock and Voya Limited 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 Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Limited.
Diversification Opportunities for John Hancock and Voya Limited
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 Government and Voya Limited Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Limited Maturity 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 Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Limited Maturity has no effect on the direction of John Hancock i.e., John Hancock and Voya Limited go up and down completely randomly.
Pair Corralation between John Hancock and Voya Limited
Assuming the 90 days horizon John Hancock Government is expected to under-perform the Voya Limited. In addition to that, John Hancock is 2.84 times more volatile than Voya Limited Maturity. It trades about -0.17 of its total potential returns per unit of risk. Voya Limited Maturity is currently generating about -0.12 per unit of volatility. If you would invest 936.00 in Voya Limited Maturity on August 29, 2024 and sell it today you would lose (6.00) from holding Voya Limited Maturity or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Voya Limited Maturity
Performance |
| Timeline |
| John Hancock Government |
| Voya Limited Maturity |
John Hancock and Voya Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Limited
The main advantage of trading using opposite John Hancock and Voya Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Limited 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 Limited will offset losses from the drop in Voya Limited's long position.| John Hancock vs. Us Global Investors | John Hancock vs. T Rowe Price | John Hancock vs. Ab Global Bond | John Hancock vs. Barings Global Floating |
| Voya Limited vs. Us Government Securities | Voya Limited vs. Prudential Government Income | Voya Limited vs. Us Government Plus | Voya Limited vs. John Hancock Government |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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