Correlation Between Allianzgi Equity and John Hancock
Can any of the company-specific risk be diversified away by investing in both Allianzgi Equity 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 Allianzgi Equity and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Equity Convertible and John Hancock Income, you can compare the effects of market volatilities on Allianzgi Equity 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 Allianzgi Equity with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Equity and John Hancock.
Diversification Opportunities for Allianzgi Equity and John Hancock
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allianzgi and John is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity 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 Allianzgi Equity 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 Allianzgi Equity 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 Allianzgi Equity i.e., Allianzgi Equity and John Hancock go up and down completely randomly.
Pair Corralation between Allianzgi Equity and John Hancock
Considering the 90-day investment horizon Allianzgi Equity Convertible is expected to generate 2.72 times more return on investment than John Hancock. However, Allianzgi Equity is 2.72 times more volatile than John Hancock Income. It trades about 0.02 of its potential returns per unit of risk. John Hancock Income is currently generating about -0.02 per unit of risk. If you would invest 2,466 in Allianzgi Equity Convertible on November 1, 2024 and sell it today you would earn a total of 11.00 from holding Allianzgi Equity Convertible or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Allianzgi Equity Convertible vs. John Hancock Income
Performance |
| Timeline |
| Allianzgi Equity Con |
| John Hancock Income |
Allianzgi Equity and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Equity and John Hancock
The main advantage of trading using opposite Allianzgi Equity and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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.| Allianzgi Equity vs. Rivernorth Opportunistic Municipalome | Allianzgi Equity vs. Blackrock Muni Intermediate | Allianzgi Equity vs. Blackrock Muniholdings Ny | Allianzgi Equity vs. Nuveen New York |
| 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 Positions Ratings module to 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.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |