Correlation Between Mfs International and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mfs International 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 Mfs International and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs International Diversification and John Hancock Bond, you can compare the effects of market volatilities on Mfs International 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 Mfs International with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs International and John Hancock.
Diversification Opportunities for Mfs International and John Hancock
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and John is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Diversificat and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Mfs International 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 Mfs International Diversification 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 Bond has no effect on the direction of Mfs International i.e., Mfs International and John Hancock go up and down completely randomly.
Pair Corralation between Mfs International and John Hancock
Assuming the 90 days horizon Mfs International Diversification is expected to generate 1.81 times more return on investment than John Hancock. However, Mfs International is 1.81 times more volatile than John Hancock Bond. It trades about 0.04 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.04 per unit of risk. If you would invest 1,943 in Mfs International Diversification on August 26, 2024 and sell it today you would earn a total of 296.00 from holding Mfs International Diversification or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International Diversificat vs. John Hancock Bond
Performance |
| Timeline |
| Mfs International |
| John Hancock Bond |
Mfs International and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs International and John Hancock
The main advantage of trading using opposite Mfs International and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs International 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.| Mfs International vs. Franklin Dynatech Fund | Mfs International vs. John Hancock Bond | Mfs International vs. Prudential Total Return | Mfs International vs. Mfs Growth Fund |
| John Hancock vs. Artisan High Income | John Hancock vs. Ab Global Risk | John Hancock vs. Pioneer High Income | John Hancock vs. Metropolitan West High |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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