Correlation Between John Hancock and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both John Hancock and Virtus AllianzGI 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 AllianzGI 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 Virtus AllianzGI Convertible, you can compare the effects of market volatilities on John Hancock and Virtus AllianzGI 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 AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Virtus AllianzGI.
Diversification Opportunities for John Hancock and Virtus AllianzGI
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Virtus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con 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 Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of John Hancock i.e., John Hancock and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between John Hancock and Virtus AllianzGI
Considering the 90-day investment horizon John Hancock Income is expected to generate 0.6 times more return on investment than Virtus AllianzGI. However, John Hancock Income is 1.66 times less risky than Virtus AllianzGI. It trades about 0.08 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about -0.09 per unit of risk. If you would invest 1,140 in John Hancock Income on September 1, 2024 and sell it today you would earn a total of 9.00 from holding John Hancock Income or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Virtus AllianzGI Convertible
Performance |
| Timeline |
| John Hancock Income |
| Virtus AllianzGI Con |
John Hancock and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Virtus AllianzGI
The main advantage of trading using opposite John Hancock and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Virtus AllianzGI 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 AllianzGI will offset losses from the drop in Virtus AllianzGI'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 |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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