Correlation Between John Hancock and Pimco Funds
Can any of the company-specific risk be diversified away by investing in both John Hancock and Pimco Funds 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 Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Money and Pimco Funds , you can compare the effects of market volatilities on John Hancock and Pimco Funds 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 Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Pimco Funds.
Diversification Opportunities for John Hancock and Pimco Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and PIMCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Pimco Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Funds 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 Money are associated (or correlated) with Pimco Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Funds has no effect on the direction of John Hancock i.e., John Hancock and Pimco Funds go up and down completely randomly.
Pair Corralation between John Hancock and Pimco Funds
If you would invest 87.00 in Pimco Funds on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Pimco Funds or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
John Hancock Money vs. Pimco Funds
Performance |
| Timeline |
| John Hancock Money |
| Pimco Funds |
John Hancock and Pimco Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Pimco Funds
The main advantage of trading using opposite John Hancock and Pimco Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Pimco Funds 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 Funds will offset losses from the drop in Pimco Funds' long position.| John Hancock vs. Materials Portfolio Fidelity | John Hancock vs. Falcon Focus Scv | John Hancock vs. Fabxx | John Hancock vs. Aam Select Income |
| Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard 500 Index | Pimco Funds vs. Vanguard Total Stock | Pimco Funds vs. Vanguard Total Stock |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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