Correlation Between Blrc Sgy and John Hancock
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy 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 Blrc Sgy and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and John Hancock Strategic, you can compare the effects of market volatilities on Blrc Sgy 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 Blrc Sgy with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and John Hancock.
Diversification Opportunities for Blrc Sgy and John Hancock
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blrc and John is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Blrc Sgy 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 Blrc Sgy Mnp 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 Strategic has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and John Hancock go up and down completely randomly.
Pair Corralation between Blrc Sgy and John Hancock
Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 0.12 times more return on investment than John Hancock. However, Blrc Sgy Mnp is 8.22 times less risky than John Hancock. It trades about -0.39 of its potential returns per unit of risk. John Hancock Strategic is currently generating about -0.22 per unit of risk. If you would invest 1,073 in Blrc Sgy Mnp on October 7, 2024 and sell it today you would lose (21.00) from holding Blrc Sgy Mnp or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. John Hancock Strategic
Performance |
| Timeline |
| Blrc Sgy Mnp |
| John Hancock Strategic |
Blrc Sgy and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and John Hancock
The main advantage of trading using opposite Blrc Sgy and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy 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.| Blrc Sgy vs. Multisector Bond Sma | Blrc Sgy vs. Versatile Bond Portfolio | Blrc Sgy vs. Franklin High Yield | Blrc Sgy vs. California Bond Fund |
| John Hancock vs. Artisan High Income | John Hancock vs. Virtus High Yield | John Hancock vs. Voya High Yield | John Hancock vs. Janus High Yield 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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