Correlation Between John Hancock and Vy Goldman
Can any of the company-specific risk be diversified away by investing in both John Hancock and Vy Goldman 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 Vy Goldman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Focused and Vy Goldman Sachs, you can compare the effects of market volatilities on John Hancock and Vy Goldman 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 Vy Goldman. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Vy Goldman.
Diversification Opportunities for John Hancock and Vy Goldman
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and VGSBX is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Focused and Vy Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Goldman Sachs 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 Focused are associated (or correlated) with Vy Goldman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Goldman Sachs has no effect on the direction of John Hancock i.e., John Hancock and Vy Goldman go up and down completely randomly.
Pair Corralation between John Hancock and Vy Goldman
Assuming the 90 days horizon John Hancock Focused is expected to generate 0.51 times more return on investment than Vy Goldman. However, John Hancock Focused is 1.98 times less risky than Vy Goldman. It trades about 0.11 of its potential returns per unit of risk. Vy Goldman Sachs is currently generating about 0.01 per unit of risk. If you would invest 262.00 in John Hancock Focused on September 4, 2024 and sell it today you would earn a total of 46.00 from holding John Hancock Focused or generate 17.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
John Hancock Focused vs. Vy Goldman Sachs
Performance |
| Timeline |
| John Hancock Focused |
| Vy Goldman Sachs |
John Hancock and Vy Goldman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Vy Goldman
The main advantage of trading using opposite John Hancock and Vy Goldman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Vy Goldman 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 Vy Goldman will offset losses from the drop in Vy Goldman's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Limited Maturity | Vy Goldman vs. Voya Limited Maturity |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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