Correlation Between John Hancock and Capital Income
Can any of the company-specific risk be diversified away by investing in both John Hancock and Capital Income 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 Capital Income 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 Capital Income Builder, you can compare the effects of market volatilities on John Hancock and Capital Income 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 Capital Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Capital Income.
Diversification Opportunities for John Hancock and Capital Income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Capital Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Income Builder 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 Capital Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Income Builder has no effect on the direction of John Hancock i.e., John Hancock and Capital Income go up and down completely randomly.
Pair Corralation between John Hancock and Capital Income
If you would invest 7,237 in Capital Income Builder on September 14, 2024 and sell it today you would earn a total of 37.00 from holding Capital Income Builder or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Money vs. Capital Income Builder
Performance |
| Timeline |
| John Hancock Money |
| Capital Income Builder |
John Hancock and Capital Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Capital Income
The main advantage of trading using opposite John Hancock and Capital Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Capital Income 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 Capital Income will offset losses from the drop in Capital Income'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 |
| Capital Income vs. Income Fund Of | Capital Income vs. American Funds 2015 | Capital Income vs. New World Fund | Capital Income vs. American Mutual Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |