Correlation Between Pro-blend(r) Moderate and John Hancock
Can any of the company-specific risk be diversified away by investing in both Pro-blend(r) Moderate 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 Pro-blend(r) Moderate and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and John Hancock Enduring, you can compare the effects of market volatilities on Pro-blend(r) Moderate 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 Pro-blend(r) Moderate with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro-blend(r) Moderate and John Hancock.
Diversification Opportunities for Pro-blend(r) Moderate and John Hancock
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pro-blend(r) and John is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring and Pro-blend(r) Moderate 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 Pro Blend Moderate Term 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 Enduring has no effect on the direction of Pro-blend(r) Moderate i.e., Pro-blend(r) Moderate and John Hancock go up and down completely randomly.
Pair Corralation between Pro-blend(r) Moderate and John Hancock
Assuming the 90 days horizon Pro-blend(r) Moderate is expected to generate 1.47 times less return on investment than John Hancock. But when comparing it to its historical volatility, Pro Blend Moderate Term is 1.81 times less risky than John Hancock. It trades about 0.09 of its potential returns per unit of risk. John Hancock Enduring is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,239 in John Hancock Enduring on August 30, 2024 and sell it today you would earn a total of 315.00 from holding John Hancock Enduring or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. John Hancock Enduring
Performance |
| Timeline |
| Pro-blend(r) Moderate |
| John Hancock Enduring |
Pro-blend(r) Moderate and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro-blend(r) Moderate and John Hancock
The main advantage of trading using opposite Pro-blend(r) Moderate and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro-blend(r) Moderate 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.| Pro-blend(r) Moderate vs. Victory High Yield | Pro-blend(r) Moderate vs. Ultra Short Fixed Income | Pro-blend(r) Moderate vs. Icon Bond Fund | Pro-blend(r) Moderate vs. Calamos Dynamic Convertible |
| John Hancock vs. Nasdaq 100 Index Fund | John Hancock vs. Issachar Fund Class | John Hancock vs. T Rowe Price | John Hancock vs. Nova Fund Class |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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