Correlation Between John Hancock and Ab Bond
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ab Bond 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 Ab Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Ab Bond Inflation, you can compare the effects of market volatilities on John Hancock and Ab Bond 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 Ab Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ab Bond.
Diversification Opportunities for John Hancock and Ab Bond
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and ABNCX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Ab Bond Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Bond Inflation 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 Disciplined are associated (or correlated) with Ab Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Bond Inflation has no effect on the direction of John Hancock i.e., John Hancock and Ab Bond go up and down completely randomly.
Pair Corralation between John Hancock and Ab Bond
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 4.4 times more return on investment than Ab Bond. However, John Hancock is 4.4 times more volatile than Ab Bond Inflation. It trades about 0.12 of its potential returns per unit of risk. Ab Bond Inflation is currently generating about 0.08 per unit of risk. If you would invest 2,550 in John Hancock Disciplined on September 3, 2024 and sell it today you would earn a total of 324.00 from holding John Hancock Disciplined or generate 12.71% 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 Disciplined vs. Ab Bond Inflation
Performance |
| Timeline |
| John Hancock Disciplined |
| Ab Bond Inflation |
John Hancock and Ab Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ab Bond
The main advantage of trading using opposite John Hancock and Ab Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ab Bond 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 Ab Bond will offset losses from the drop in Ab Bond's long position.| John Hancock vs. Ab Bond Inflation | John Hancock vs. Asg Managed Futures | John Hancock vs. Ab Bond Inflation | John Hancock vs. Guidepath Managed Futures |
| Ab Bond vs. Vanguard Short Term Inflation Protected | Ab Bond vs. T Rowe Price | Ab Bond vs. T Rowe Price | Ab Bond vs. T Rowe Price |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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