Correlation Between John Hancock and Alliancebernstein
Can any of the company-specific risk be diversified away by investing in both John Hancock and Alliancebernstein 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 Alliancebernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and Alliancebernstein Global High, you can compare the effects of market volatilities on John Hancock and Alliancebernstein 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 Alliancebernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Alliancebernstein.
Diversification Opportunities for John Hancock and Alliancebernstein
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Alliancebernstein is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Alliancebernstein Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliancebernstein 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 Global are associated (or correlated) with Alliancebernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliancebernstein has no effect on the direction of John Hancock i.e., John Hancock and Alliancebernstein go up and down completely randomly.
Pair Corralation between John Hancock and Alliancebernstein
Assuming the 90 days horizon John Hancock is expected to generate 1.65 times less return on investment than Alliancebernstein. In addition to that, John Hancock is 1.23 times more volatile than Alliancebernstein Global High. It trades about 0.04 of its total potential returns per unit of risk. Alliancebernstein Global High is currently generating about 0.07 per unit of volatility. If you would invest 1,083 in Alliancebernstein Global High on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Alliancebernstein Global High or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Global vs. Alliancebernstein Global High
Performance |
| Timeline |
| John Hancock Global |
| Alliancebernstein |
John Hancock and Alliancebernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Alliancebernstein
The main advantage of trading using opposite John Hancock and Alliancebernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Alliancebernstein 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 Alliancebernstein will offset losses from the drop in Alliancebernstein's long position.| John Hancock vs. Alliancebernstein Global High | John Hancock vs. T Rowe Price | John Hancock vs. Needham Aggressive Growth | John Hancock vs. Western Asset High |
| Alliancebernstein vs. Doubleline Yield Opportunities | Alliancebernstein vs. Highland Floating Rate | Alliancebernstein vs. Doubleline Opportunistic Credit | Alliancebernstein vs. Western Asset Emerging |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |