Correlation Between Mainstay Income and John Hancock
Can any of the company-specific risk be diversified away by investing in both Mainstay Income 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 Mainstay Income and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and John Hancock Enduring, you can compare the effects of market volatilities on Mainstay Income 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 Mainstay Income with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and John Hancock.
Diversification Opportunities for Mainstay Income and John Hancock
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and John is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder 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 Mainstay Income 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 Mainstay Income Builder 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 Mainstay Income i.e., Mainstay Income and John Hancock go up and down completely randomly.
Pair Corralation between Mainstay Income and John Hancock
Assuming the 90 days horizon Mainstay Income is expected to generate 1.88 times less return on investment than John Hancock. But when comparing it to its historical volatility, Mainstay Income Builder is 1.33 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 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,519 in John Hancock Enduring on August 26, 2024 and sell it today you would earn a total of 25.00 from holding John Hancock Enduring or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. John Hancock Enduring
Performance |
| Timeline |
| Mainstay Income Builder |
| John Hancock Enduring |
Mainstay Income and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and John Hancock
The main advantage of trading using opposite Mainstay Income and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income 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.| Mainstay Income vs. Mainstay Vertible Fund | Mainstay Income vs. Mfs Modity Strategy | Mainstay Income vs. Mainstay High Yield | Mainstay Income vs. Mainstay Balanced Fund |
| John Hancock vs. Saat Moderate Strategy | John Hancock vs. Fidelity Managed Retirement | John Hancock vs. Pgim Conservative Retirement | John Hancock vs. Pro Blend Moderate Term |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |