Correlation Between John Hancock and Pimco Short-term
Can any of the company-specific risk be diversified away by investing in both John Hancock and Pimco Short-term 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 Pimco Short-term 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 Pimco Short Term Fund, you can compare the effects of market volatilities on John Hancock and Pimco Short-term 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 Pimco Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Pimco Short-term.
Diversification Opportunities for John Hancock and Pimco Short-term
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Pimco is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Pimco Short Term Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Short Term 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 Pimco Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Short Term has no effect on the direction of John Hancock i.e., John Hancock and Pimco Short-term go up and down completely randomly.
Pair Corralation between John Hancock and Pimco Short-term
Assuming the 90 days horizon John Hancock Government is expected to under-perform the Pimco Short-term. In addition to that, John Hancock is 3.71 times more volatile than Pimco Short Term Fund. It trades about -0.07 of its total potential returns per unit of risk. Pimco Short Term Fund is currently generating about 0.19 per unit of volatility. If you would invest 956.00 in Pimco Short Term Fund on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Pimco Short Term Fund or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Pimco Short Term Fund
Performance |
| Timeline |
| John Hancock Government |
| Pimco Short Term |
John Hancock and Pimco Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Pimco Short-term
The main advantage of trading using opposite John Hancock and Pimco Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Pimco Short-term 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 Pimco Short-term will offset losses from the drop in Pimco Short-term's long position.| John Hancock vs. First American Funds | John Hancock vs. Wt Mutual Fund | John Hancock vs. Transamerica Funds | John Hancock vs. Hsbc Treasury Money |
| Pimco Short-term vs. Government Securities Fund | Pimco Short-term vs. Inverse Government Long | Pimco Short-term vs. Aig Government Money | Pimco Short-term 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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