Correlation Between John Hancock and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both John Hancock and Balanced Fund 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 Balanced Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Strategic and Balanced Fund Investor, you can compare the effects of market volatilities on John Hancock and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Balanced Fund.
Diversification Opportunities for John Hancock and Balanced Fund
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Balanced is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Strategic and Balanced Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Investor 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 Strategic are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Investor has no effect on the direction of John Hancock i.e., John Hancock and Balanced Fund go up and down completely randomly.
Pair Corralation between John Hancock and Balanced Fund
Assuming the 90 days horizon John Hancock Strategic is expected to generate 1.99 times more return on investment than Balanced Fund. However, John Hancock is 1.99 times more volatile than Balanced Fund Investor. It trades about 0.11 of its potential returns per unit of risk. Balanced Fund Investor is currently generating about 0.12 per unit of risk. If you would invest 2,066 in John Hancock Strategic on September 12, 2024 and sell it today you would earn a total of 889.00 from holding John Hancock Strategic or generate 43.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Strategic vs. Balanced Fund Investor
Performance |
| Timeline |
| John Hancock Strategic |
| Balanced Fund Investor |
John Hancock and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Balanced Fund
The main advantage of trading using opposite John Hancock and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| John Hancock vs. Balanced Fund Investor | John Hancock vs. T Rowe Price | John Hancock vs. Small Cap Stock | John Hancock vs. T Rowe Price |
| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |