Correlation Between Mutual Of and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and John Hancock Funds, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and John Hancock.
Diversification Opportunities for Mutual Of and John Hancock
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mutual and John is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and John Hancock Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Funds and Mutual Of 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 Mutual Of America 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 Funds has no effect on the direction of Mutual Of i.e., Mutual Of and John Hancock go up and down completely randomly.
Pair Corralation between Mutual Of and John Hancock
Assuming the 90 days horizon Mutual Of America is expected to under-perform the John Hancock. In addition to that, Mutual Of is 2.68 times more volatile than John Hancock Funds. It trades about -0.04 of its total potential returns per unit of risk. John Hancock Funds is currently generating about 0.18 per unit of volatility. If you would invest 1,109 in John Hancock Funds on September 13, 2024 and sell it today you would earn a total of 11.00 from holding John Hancock Funds or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. John Hancock Funds
Performance |
| Timeline |
| Mutual Of America |
| John Hancock Funds |
Mutual Of and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and John Hancock
The main advantage of trading using opposite Mutual Of and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. Franklin High Yield | Mutual Of vs. Virtus High Yield | Mutual Of vs. Neuberger Berman Income | Mutual Of vs. Msift High Yield |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |