Correlation Between John Hancock and High Yield
Can any of the company-specific risk be diversified away by investing in both John Hancock and High Yield 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 High Yield 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 High Yield Municipal Fund, you can compare the effects of market volatilities on John Hancock and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and High Yield.
Diversification Opportunities for John Hancock and High Yield
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of John Hancock i.e., John Hancock and High Yield go up and down completely randomly.
Pair Corralation between John Hancock and High Yield
If you would invest 814.00 in High Yield Municipal Fund on September 14, 2024 and sell it today you would earn a total of 84.00 from holding High Yield Municipal Fund or generate 10.32% 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. High Yield Municipal Fund
Performance |
| Timeline |
| John Hancock Money |
| High Yield Municipal |
John Hancock and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and High Yield
The main advantage of trading using opposite John Hancock and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| John Hancock vs. Pax High Yield | John Hancock vs. Alpine High Yield | John Hancock vs. T Rowe Price | John Hancock vs. Guggenheim High Yield |
| High Yield vs. John Hancock Money | High Yield vs. The Gabelli Money | High Yield vs. Blackrock Exchange Portfolio | High Yield vs. Matson Money Equity |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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