Correlation Between John Hancock and Janus Venture
Can any of the company-specific risk be diversified away by investing in both John Hancock and Janus Venture 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 Venture 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 Janus Venture Fund, you can compare the effects of market volatilities on John Hancock and Janus Venture 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 Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Janus Venture.
Diversification Opportunities for John Hancock and Janus Venture
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Janus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Janus Venture Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Venture 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 Janus Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Venture has no effect on the direction of John Hancock i.e., John Hancock and Janus Venture go up and down completely randomly.
Pair Corralation between John Hancock and Janus Venture
Assuming the 90 days horizon John Hancock is expected to generate 1.25 times less return on investment than Janus Venture. But when comparing it to its historical volatility, John Hancock Disciplined is 1.22 times less risky than Janus Venture. It trades about 0.31 of its potential returns per unit of risk. Janus Venture Fund is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 8,720 in Janus Venture Fund on September 1, 2024 and sell it today you would earn a total of 817.00 from holding Janus Venture Fund or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Disciplined vs. Janus Venture Fund
Performance |
| Timeline |
| John Hancock Disciplined |
| Janus Venture |
John Hancock and Janus Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Janus Venture
The main advantage of trading using opposite John Hancock and Janus Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Janus Venture 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 Venture will offset losses from the drop in Janus Venture's long position.| John Hancock vs. John Hancock Disciplined | John Hancock vs. John Hancock Bond | John Hancock vs. Us Global Leaders | John Hancock vs. Mfs International Value |
| Janus Venture vs. Blackrock Sp 500 | Janus Venture vs. Janus Enterprise Fund | Janus Venture vs. Columbia Small Cap | Janus Venture vs. John Hancock Disciplined |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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