Correlation Between John Hancock and MFS Municipal
Can any of the company-specific risk be diversified away by investing in both John Hancock and MFS Municipal 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 Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Investors and MFS Municipal Income, you can compare the effects of market volatilities on John Hancock and MFS Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and MFS Municipal.
Diversification Opportunities for John Hancock and MFS Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and MFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investors and MFS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Municipal Income 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 Investors are associated (or correlated) with MFS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Municipal Income has no effect on the direction of John Hancock i.e., John Hancock and MFS Municipal go up and down completely randomly.
Pair Corralation between John Hancock and MFS Municipal
Considering the 90-day investment horizon John Hancock is expected to generate 4.39 times less return on investment than MFS Municipal. But when comparing it to its historical volatility, John Hancock Investors is 2.24 times less risky than MFS Municipal. It trades about 0.12 of its potential returns per unit of risk. MFS Municipal Income is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 547.00 in MFS Municipal Income on August 30, 2024 and sell it today you would earn a total of 19.00 from holding MFS Municipal Income or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Investors vs. MFS Municipal Income
Performance |
| Timeline |
| John Hancock Investors |
| MFS Municipal Income |
John Hancock and MFS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and MFS Municipal
The main advantage of trading using opposite John Hancock and MFS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, MFS Municipal 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 Municipal will offset losses from the drop in MFS Municipal's long position.| John Hancock vs. ClimateRock Class A | John Hancock vs. CF Acquisition VII | John Hancock vs. DP Cap Acquisition |
| MFS Municipal vs. Eaton Vance National | MFS Municipal vs. Invesco High Income | MFS Municipal vs. Blackrock Muniholdings Ny | MFS Municipal vs. Nuveen California Select |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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