Correlation Between John Hancock and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both John Hancock and Bny Mellon 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 Bny Mellon 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 Bny Mellon Mid, you can compare the effects of market volatilities on John Hancock and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Bny Mellon.
Diversification Opportunities for John Hancock and Bny Mellon
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Bny is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Bny Mellon Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Mid 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Mid has no effect on the direction of John Hancock i.e., John Hancock and Bny Mellon go up and down completely randomly.
Pair Corralation between John Hancock and Bny Mellon
Assuming the 90 days horizon John Hancock Government is expected to under-perform the Bny Mellon. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Government is 2.81 times less risky than Bny Mellon. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Bny Mellon Mid is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,786 in Bny Mellon Mid on August 26, 2024 and sell it today you would earn a total of 137.00 from holding Bny Mellon Mid or generate 7.67% 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. Bny Mellon Mid
Performance |
| Timeline |
| John Hancock Government |
| Bny Mellon Mid |
John Hancock and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Bny Mellon
The main advantage of trading using opposite John Hancock and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Invesco Government Fund | Bny Mellon vs. Ab Government Exchange | Bny Mellon vs. Dws Government Money | Bny Mellon 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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