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 Value and John Hancock Disciplined, 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
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and John is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mfs International Value 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 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 Value 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 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 Value is expected to under-perform the John Hancock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mfs International Value is 1.28 times less risky than John Hancock. The mutual fund trades about -0.08 of its potential returns per unit of risk. The John Hancock Disciplined is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,852 in John Hancock Disciplined on September 3, 2024 and sell it today you would earn a total of 194.00 from holding John Hancock Disciplined or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs International Value vs. John Hancock Disciplined
Performance |
| Timeline |
| Mfs International Value |
| John Hancock Disciplined |
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. Fidelity International Growth | Mfs International vs. Fidelity Small Cap | Mfs International vs. Fidelity Advisor Mid | Mfs International vs. HUMANA INC |
| John Hancock vs. Nasdaq 100 2x Strategy | John Hancock vs. Templeton Emerging Markets | John Hancock vs. Black Oak Emerging | John Hancock vs. Rbc Emerging Markets |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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