Correlation Between John Hancock and Gabelli MultiMedia
Can any of the company-specific risk be diversified away by investing in both John Hancock and Gabelli MultiMedia 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 Gabelli MultiMedia 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 Gabelli MultiMedia Mutual, you can compare the effects of market volatilities on John Hancock and Gabelli MultiMedia 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 Gabelli MultiMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Gabelli MultiMedia.
Diversification Opportunities for John Hancock and Gabelli MultiMedia
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and Gabelli is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Gabelli MultiMedia Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli MultiMedia Mutual 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 Gabelli MultiMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli MultiMedia Mutual has no effect on the direction of John Hancock i.e., John Hancock and Gabelli MultiMedia go up and down completely randomly.
Pair Corralation between John Hancock and Gabelli MultiMedia
Considering the 90-day investment horizon John Hancock is expected to generate 52.89 times less return on investment than Gabelli MultiMedia. But when comparing it to its historical volatility, John Hancock Income is 1.18 times less risky than Gabelli MultiMedia. It trades about 0.01 of its potential returns per unit of risk. Gabelli MultiMedia Mutual is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Gabelli MultiMedia Mutual on November 9, 2024 and sell it today you would earn a total of 28.00 from holding Gabelli MultiMedia Mutual or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Gabelli MultiMedia Mutual
Performance |
| Timeline |
| John Hancock Income |
| Gabelli MultiMedia Mutual |
John Hancock and Gabelli MultiMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Gabelli MultiMedia
The main advantage of trading using opposite John Hancock and Gabelli MultiMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Gabelli MultiMedia 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 Gabelli MultiMedia will offset losses from the drop in Gabelli MultiMedia'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 |
| Gabelli MultiMedia vs. Gabelli Equity Trust | Gabelli MultiMedia vs. Gabelli Healthcare WellnessRx | Gabelli MultiMedia vs. Gabelli Convertible And | Gabelli MultiMedia vs. Gabelli Dividend 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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