Correlation Between John Hancock and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackstone Gso 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 Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Income and Blackstone Gso Long, you can compare the effects of market volatilities on John Hancock and Blackstone Gso 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 Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackstone Gso.
Diversification Opportunities for John Hancock and Blackstone Gso
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Blackstone is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long 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 Income are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of John Hancock i.e., John Hancock and Blackstone Gso go up and down completely randomly.
Pair Corralation between John Hancock and Blackstone Gso
Considering the 90-day investment horizon John Hancock is expected to generate 3.35 times less return on investment than Blackstone Gso. But when comparing it to its historical volatility, John Hancock Income is 1.32 times less risky than Blackstone Gso. It trades about 0.08 of its potential returns per unit of risk. Blackstone Gso Long is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,253 in Blackstone Gso Long on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Blackstone Gso Long or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Blackstone Gso Long
Performance |
| Timeline |
| John Hancock Income |
| Blackstone Gso Long |
John Hancock and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackstone Gso
The main advantage of trading using opposite John Hancock and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
| Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackrock International Growth | Blackstone Gso vs. BlackRock Municipal Income |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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