Correlation Between John Hancock and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both John Hancock and Blackrock Muniholdings 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 Blackrock Muniholdings 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 Blackrock Muniholdings Ny, you can compare the effects of market volatilities on John Hancock and Blackrock Muniholdings 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 Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Blackrock Muniholdings.
Diversification Opportunities for John Hancock and Blackrock Muniholdings
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Blackrock is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Blackrock Muniholdings Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings 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 Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of John Hancock i.e., John Hancock and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between John Hancock and Blackrock Muniholdings
Considering the 90-day investment horizon John Hancock Income is expected to generate 1.15 times more return on investment than Blackrock Muniholdings. However, John Hancock is 1.15 times more volatile than Blackrock Muniholdings Ny. It trades about 0.06 of its potential returns per unit of risk. Blackrock Muniholdings Ny is currently generating about 0.05 per unit of risk. If you would invest 1,053 in John Hancock Income on September 14, 2024 and sell it today you would earn a total of 87.00 from holding John Hancock Income or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
John Hancock Income vs. Blackrock Muniholdings Ny
Performance |
| Timeline |
| John Hancock Income |
| Blackrock Muniholdings |
John Hancock and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Blackrock Muniholdings
The main advantage of trading using opposite John Hancock and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Blackrock Muniholdings 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 Blackrock Muniholdings will offset losses from the drop in Blackrock Muniholdings' long position.| John Hancock vs. Visa Class A | John Hancock vs. Diamond Hill Investment | John Hancock vs. Distoken Acquisition | John Hancock vs. AllianceBernstein Holding LP |
| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Federated Premier Municipal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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