Correlation Between John Hancock and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both John Hancock and Janus Henderson 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 Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Exchange Traded and Janus Henderson Mortgage Backed, you can compare the effects of market volatilities on John Hancock and Janus Henderson 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 Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Janus Henderson.
Diversification Opportunities for John Hancock and Janus Henderson
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between John and Janus is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Exchange Traded and Janus Henderson Mortgage Backe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Mort 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 Exchange Traded are associated (or correlated) with Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Mort has no effect on the direction of John Hancock i.e., John Hancock and Janus Henderson go up and down completely randomly.
Pair Corralation between John Hancock and Janus Henderson
Given the investment horizon of 90 days John Hancock Exchange Traded is expected to generate 1.04 times more return on investment than Janus Henderson. However, John Hancock is 1.04 times more volatile than Janus Henderson Mortgage Backed. It trades about 0.07 of its potential returns per unit of risk. Janus Henderson Mortgage Backed is currently generating about 0.06 per unit of risk. If you would invest 2,048 in John Hancock Exchange Traded on September 2, 2024 and sell it today you would earn a total of 141.00 from holding John Hancock Exchange Traded or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Exchange Traded vs. Janus Henderson Mortgage Backe
Performance |
| Timeline |
| John Hancock Exchange |
| Janus Henderson Mort |
John Hancock and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Janus Henderson
The main advantage of trading using opposite John Hancock and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| John Hancock vs. SSGA Active Trust | John Hancock vs. BlackRock Intermediate Muni | John Hancock vs. iShares BBB Rated | John Hancock vs. Xtrackers Short Duration |
| Janus Henderson vs. Janus Henderson Short | Janus Henderson vs. iShares CMBS ETF | Janus Henderson vs. Janus Detroit Street | Janus Henderson vs. Alpha Architect Gdsdn |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |