Correlation Between John Hancock and Mfs Research
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mfs Research 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 Mfs Research 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 Mfs Research Fund, you can compare the effects of market volatilities on John Hancock and Mfs Research 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 Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mfs Research.
Diversification Opportunities for John Hancock and Mfs Research
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Mfs is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research 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 Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of John Hancock i.e., John Hancock and Mfs Research go up and down completely randomly.
Pair Corralation between John Hancock and Mfs Research
Assuming the 90 days horizon John Hancock is expected to generate 9.64 times less return on investment than Mfs Research. But when comparing it to its historical volatility, John Hancock Government is 1.92 times less risky than Mfs Research. It trades about 0.02 of its potential returns per unit of risk. Mfs Research Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,949 in Mfs Research Fund on September 2, 2024 and sell it today you would earn a total of 1,839 from holding Mfs Research Fund or generate 37.16% 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. Mfs Research Fund
Performance |
| Timeline |
| John Hancock Government |
| Mfs Research |
John Hancock and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mfs Research
The main advantage of trading using opposite John Hancock and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mfs Research 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 Mfs Research will offset losses from the drop in Mfs Research's long position.| John Hancock vs. Volumetric Fund Volumetric | John Hancock vs. Rbc Microcap Value | John Hancock vs. T Rowe Price | John Hancock vs. Falcon Focus Scv |
| Mfs Research vs. Mfs Prudent Investor | Mfs Research vs. Mfs Prudent Investor | Mfs Research vs. Mfs Prudent Investor | Mfs Research vs. Mfs Prudent Investor |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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