Correlation Between Ms Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Ms Global 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 Ms Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ms Global Fixed and John Hancock Bond, you can compare the effects of market volatilities on Ms Global 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 Ms Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ms Global and John Hancock.
Diversification Opportunities for Ms Global and John Hancock
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MFIRX and John is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ms Global Fixed 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 Ms Global 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 Ms Global Fixed 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 Ms Global i.e., Ms Global and John Hancock go up and down completely randomly.
Pair Corralation between Ms Global and John Hancock
Assuming the 90 days horizon Ms Global Fixed is expected to generate 0.49 times more return on investment than John Hancock. However, Ms Global Fixed is 2.03 times less risky than John Hancock. It trades about 0.13 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 464.00 in Ms Global Fixed on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Ms Global Fixed or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ms Global Fixed vs. John Hancock Bond
Performance |
| Timeline |
| Ms Global Fixed |
| John Hancock Bond |
Ms Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ms Global and John Hancock
The main advantage of trading using opposite Ms Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ms Global 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.| Ms Global vs. Artisan Emerging Markets | Ms Global vs. Ep Emerging Markets | Ms Global vs. The Hartford Emerging | Ms Global vs. Fundvantage Trust |
| John Hancock vs. Fidelity Advisor Health | John Hancock vs. Blackrock Health Sciences | John Hancock vs. Highland Longshort Healthcare | John Hancock vs. Alger Health Sciences |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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