Correlation Between John Hancock and Virtus Westchester
Can any of the company-specific risk be diversified away by investing in both John Hancock and Virtus Westchester 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 Virtus Westchester 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 Virtus Westchester Credit, you can compare the effects of market volatilities on John Hancock and Virtus Westchester 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 Virtus Westchester. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Virtus Westchester.
Diversification Opportunities for John Hancock and Virtus Westchester
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Virtus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Virtus Westchester Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Westchester Credit 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 Virtus Westchester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Westchester Credit has no effect on the direction of John Hancock i.e., John Hancock and Virtus Westchester go up and down completely randomly.
Pair Corralation between John Hancock and Virtus Westchester
If you would invest 1,189 in Virtus Westchester Credit on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Virtus Westchester Credit or generate 0.84% 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. Virtus Westchester Credit
Performance |
| Timeline |
| John Hancock Money |
| Virtus Westchester Credit |
John Hancock and Virtus Westchester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Virtus Westchester
The main advantage of trading using opposite John Hancock and Virtus Westchester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Virtus Westchester 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 Virtus Westchester will offset losses from the drop in Virtus Westchester's long position.| John Hancock vs. Mesirow Financial Small | John Hancock vs. Fidelity Advisor Financial | John Hancock vs. Financials Ultrasector Profund | John Hancock vs. Prudential Jennison Financial |
| Virtus Westchester vs. Prudential Health Sciences | Virtus Westchester vs. Alphacentric Lifesci Healthcare | Virtus Westchester vs. Eventide Healthcare Life | Virtus Westchester vs. Alger Health Sciences |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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