Correlation Between Virtus AllianzGI and John Hancock
Can any of the company-specific risk be diversified away by investing in both Virtus AllianzGI 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 Virtus AllianzGI and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus AllianzGI Convertible and John Hancock Income, you can compare the effects of market volatilities on Virtus AllianzGI 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 Virtus AllianzGI with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus AllianzGI and John Hancock.
Diversification Opportunities for Virtus AllianzGI and John Hancock
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and John is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Virtus AllianzGI Convertible and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Virtus AllianzGI 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 Virtus AllianzGI Convertible 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 Income has no effect on the direction of Virtus AllianzGI i.e., Virtus AllianzGI and John Hancock go up and down completely randomly.
Pair Corralation between Virtus AllianzGI and John Hancock
Assuming the 90 days trading horizon Virtus AllianzGI Convertible is expected to under-perform the John Hancock. In addition to that, Virtus AllianzGI is 1.66 times more volatile than John Hancock Income. It trades about -0.09 of its total potential returns per unit of risk. John Hancock Income is currently generating about 0.08 per unit of volatility. If you would invest 1,140 in John Hancock Income on September 1, 2024 and sell it today you would earn a total of 9.00 from holding John Hancock Income or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus AllianzGI Convertible vs. John Hancock Income
Performance |
| Timeline |
| Virtus AllianzGI Con |
| John Hancock Income |
Virtus AllianzGI and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus AllianzGI and John Hancock
The main advantage of trading using opposite Virtus AllianzGI and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus AllianzGI 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.| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |