Correlation Between John Hancock and Janus Overseas
Can any of the company-specific risk be diversified away by investing in both John Hancock and Janus Overseas 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 Janus Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Investment and Janus Overseas Fund, you can compare the effects of market volatilities on John Hancock and Janus Overseas 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 Janus Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Janus Overseas.
Diversification Opportunities for John Hancock and Janus Overseas
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Janus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investment and Janus Overseas Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Overseas 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 Investment are associated (or correlated) with Janus Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Overseas has no effect on the direction of John Hancock i.e., John Hancock and Janus Overseas go up and down completely randomly.
Pair Corralation between John Hancock and Janus Overseas
Assuming the 90 days horizon John Hancock Investment is expected to generate 1.06 times more return on investment than Janus Overseas. However, John Hancock is 1.06 times more volatile than Janus Overseas Fund. It trades about 0.09 of its potential returns per unit of risk. Janus Overseas Fund is currently generating about 0.06 per unit of risk. If you would invest 6,800 in John Hancock Investment on September 2, 2024 and sell it today you would earn a total of 1,452 from holding John Hancock Investment or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Investment vs. Janus Overseas Fund
Performance |
| Timeline |
| John Hancock Investment |
| Janus Overseas |
John Hancock and Janus Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Janus Overseas
The main advantage of trading using opposite John Hancock and Janus Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Janus Overseas 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 Janus Overseas will offset losses from the drop in Janus Overseas' long position.| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
| Janus Overseas vs. Touchstone Large Cap | Janus Overseas vs. Americafirst Large Cap | Janus Overseas vs. Qs Large Cap | Janus Overseas vs. Legg Mason Bw |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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