Correlation Between Janus Henderson and John Hancock
Can any of the company-specific risk be diversified away by investing in both Janus Henderson and John Hancock 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 Janus Henderson and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Henderson Research and John Hancock Variable, you can compare the effects of market volatilities on Janus Henderson and John Hancock 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 Janus Henderson with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and John Hancock.
Diversification Opportunities for Janus Henderson and John Hancock
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Janus and John is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Research and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Janus Henderson 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 Janus Henderson Research are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Variable has no effect on the direction of Janus Henderson i.e., Janus Henderson and John Hancock go up and down completely randomly.
Pair Corralation between Janus Henderson and John Hancock
Assuming the 90 days horizon Janus Henderson Research is expected to generate 0.97 times more return on investment than John Hancock. However, Janus Henderson Research is 1.03 times less risky than John Hancock. It trades about 0.11 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.04 per unit of risk. If you would invest 4,777 in Janus Henderson Research on August 30, 2024 and sell it today you would earn a total of 3,692 from holding Janus Henderson Research or generate 77.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Henderson Research vs. John Hancock Variable
Performance |
| Timeline |
| Janus Henderson Research |
| John Hancock Variable |
Janus Henderson and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Henderson and John Hancock
The main advantage of trading using opposite Janus Henderson and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Janus Henderson vs. John Hancock Variable | Janus Henderson vs. Dunham Real Estate | Janus Henderson vs. Fidelity Advisor Real | Janus Henderson vs. Heitman Real Estate |
| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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