Correlation Between Voya Russia and John Hancock
Can any of the company-specific risk be diversified away by investing in both Voya Russia and John Hancock 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 Voya Russia and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Russia Fund and John Hancock Tax, you can compare the effects of market volatilities on Voya Russia and John Hancock 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 Voya Russia with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Russia and John Hancock.
Diversification Opportunities for Voya Russia and John Hancock
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and John is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Voya Russia Fund and John Hancock Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Voya Russia 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 Voya Russia Fund are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Tax has no effect on the direction of Voya Russia i.e., Voya Russia and John Hancock go up and down completely randomly.
Pair Corralation between Voya Russia and John Hancock
Assuming the 90 days horizon Voya Russia Fund is expected to under-perform the John Hancock. In addition to that, Voya Russia is 3.44 times more volatile than John Hancock Tax. It trades about -0.01 of its total potential returns per unit of risk. John Hancock Tax is currently generating about 0.08 per unit of volatility. If you would invest 1,809 in John Hancock Tax on August 31, 2024 and sell it today you would earn a total of 555.00 from holding John Hancock Tax or generate 30.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Voya Russia Fund vs. John Hancock Tax
Performance |
| Timeline |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Tax |
Voya Russia and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Russia and John Hancock
The main advantage of trading using opposite Voya Russia and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Russia position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Voya Russia vs. T Rowe Price | Voya Russia vs. Tax Managed Large Cap | Voya Russia vs. Enhanced Large Pany | Voya Russia vs. Strategic Allocation Aggressive |
| John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Preferred | John Hancock vs. Pimco Corporate Income |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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