Correlation Between John Hancock and Ms Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ms Global 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 Ms Global 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 Ms Global Fixed, you can compare the effects of market volatilities on John Hancock and Ms Global 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 Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ms Global.
Diversification Opportunities for John Hancock and Ms Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and MFIRX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed 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 Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of John Hancock i.e., John Hancock and Ms Global go up and down completely randomly.
Pair Corralation between John Hancock and Ms Global
Assuming the 90 days horizon John Hancock is expected to generate 1.93 times less return on investment than Ms Global. In addition to that, John Hancock is 5.07 times more volatile than Ms Global Fixed. It trades about 0.02 of its total potential returns per unit of risk. Ms Global Fixed is currently generating about 0.16 per unit of volatility. If you would invest 455.00 in Ms Global Fixed on November 27, 2024 and sell it today you would earn a total of 75.00 from holding Ms Global Fixed or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
John Hancock Disciplined vs. Ms Global Fixed
Performance |
| Timeline |
| John Hancock Disciplined |
| Ms Global Fixed |
John Hancock and Ms Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ms Global
The main advantage of trading using opposite John Hancock and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ms Global 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 Ms Global will offset losses from the drop in Ms Global's long position.| John Hancock vs. Maryland Short Term Tax Free | John Hancock vs. Siit Emerging Markets | John Hancock vs. Angel Oak Ultrashort | John Hancock vs. Legg Mason Western |
| Ms Global vs. Ab Global Bond | Ms Global vs. Gmo Global Equity | Ms Global vs. Investec Global Franchise | Ms Global vs. Us Global Investors |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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