Correlation Between Amg Managers and John Hancock
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Montag and John Hancock Disciplined, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and John Hancock.
Diversification Opportunities for Amg Managers and John Hancock
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and John is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Montag and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Amg Managers 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 Amg Managers Montag 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 Disciplined has no effect on the direction of Amg Managers i.e., Amg Managers and John Hancock go up and down completely randomly.
Pair Corralation between Amg Managers and John Hancock
Assuming the 90 days horizon Amg Managers is expected to generate 1.49 times less return on investment than John Hancock. In addition to that, Amg Managers is 1.13 times more volatile than John Hancock Disciplined. It trades about 0.06 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.1 per unit of volatility. If you would invest 2,911 in John Hancock Disciplined on August 29, 2024 and sell it today you would earn a total of 336.00 from holding John Hancock Disciplined or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Montag vs. John Hancock Disciplined
Performance |
| Timeline |
| Amg Managers Montag |
| John Hancock Disciplined |
Amg Managers and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and John Hancock
The main advantage of trading using opposite Amg Managers and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Growth Fund Of | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International | Amg Managers vs. Barloworld Ltd ADR |
| John Hancock vs. New World Fund | John Hancock vs. Bond Fund Of | John Hancock vs. Washington Mutual Investors | John Hancock vs. Europacific Growth Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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