Correlation Between John Hancock and Voya Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Voya Global 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 Global 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 Global Bond, you can compare the effects of market volatilities on John Hancock and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Voya Global.
Diversification Opportunities for John Hancock and Voya Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Voya is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of John Hancock i.e., John Hancock and Voya Global go up and down completely randomly.
Pair Corralation between John Hancock and Voya Global
Assuming the 90 days horizon John Hancock Government is expected to generate 0.91 times more return on investment than Voya Global. However, John Hancock Government is 1.09 times less risky than Voya Global. It trades about 0.07 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.05 per unit of risk. If you would invest 762.00 in John Hancock Government on August 30, 2024 and sell it today you would earn a total of 22.00 from holding John Hancock Government or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Voya Global Bond
Performance |
| Timeline |
| John Hancock Government |
| Voya Global Bond |
John Hancock and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Voya Global
The main advantage of trading using opposite John Hancock and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Voya Global vs. John Hancock Government | Voya Global vs. Blackrock Government Bond | Voya Global vs. Us Government Securities | Voya Global vs. Us Government Securities |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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