Correlation Between John Hancock and Morningstar Municipal
Can any of the company-specific risk be diversified away by investing in both John Hancock and Morningstar 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 Morningstar Municipal 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 Morningstar Municipal Bond, you can compare the effects of market volatilities on John Hancock and Morningstar 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 Morningstar Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Morningstar Municipal.
Diversification Opportunities for John Hancock and Morningstar Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Morningstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Morningstar Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morningstar 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 Morningstar Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morningstar Municipal has no effect on the direction of John Hancock i.e., John Hancock and Morningstar Municipal go up and down completely randomly.
Pair Corralation between John Hancock and Morningstar Municipal
If you would invest 991.00 in Morningstar Municipal Bond on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Morningstar Municipal Bond or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
John Hancock Money vs. Morningstar Municipal Bond
Performance |
| Timeline |
| John Hancock Money |
| Morningstar Municipal |
John Hancock and Morningstar Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Morningstar Municipal
The main advantage of trading using opposite John Hancock and Morningstar Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Morningstar 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 Morningstar Municipal will offset losses from the drop in Morningstar Municipal's long position.| John Hancock vs. Franklin Servative Allocation | John Hancock vs. Tax Free Conservative Income | John Hancock vs. Voya Retirement Servative | John Hancock vs. Goldman Sachs Short Term |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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