Correlation Between John Hancock and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mainstay Map 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 Mainstay Map 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 Mainstay Map Equity, you can compare the effects of market volatilities on John Hancock and Mainstay Map 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 Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mainstay Map.
Diversification Opportunities for John Hancock and Mainstay Map
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Mainstay is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of John Hancock i.e., John Hancock and Mainstay Map go up and down completely randomly.
Pair Corralation between John Hancock and Mainstay Map
Assuming the 90 days horizon John Hancock is expected to generate 6.09 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, John Hancock Government is 2.23 times less risky than Mainstay Map. It trades about 0.08 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,179 in Mainstay Map Equity on August 31, 2024 and sell it today you would earn a total of 87.00 from holding Mainstay Map Equity or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Mainstay Map Equity
Performance |
| Timeline |
| John Hancock Government |
| Mainstay Map Equity |
John Hancock and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mainstay Map
The main advantage of trading using opposite John Hancock and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map's long position.| John Hancock vs. International Investors Gold | John Hancock vs. Franklin Gold Precious | John Hancock vs. Short Precious Metals | John Hancock vs. Precious Metals And |
| Mainstay Map vs. Blackrock Government Bond | Mainstay Map vs. Goldman Sachs Government | Mainstay Map vs. Us Government Securities | Mainstay Map 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |