Correlation Between PIMCO Access and John Hancock
Can any of the company-specific risk be diversified away by investing in both PIMCO Access 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 PIMCO Access and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PIMCO Access Income and John Hancock Hedged, you can compare the effects of market volatilities on PIMCO Access 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 PIMCO Access with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of PIMCO Access and John Hancock.
Diversification Opportunities for PIMCO Access and John Hancock
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PIMCO and John is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PIMCO Access Income and John Hancock Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Hedged and PIMCO Access 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 PIMCO Access Income 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 Hedged has no effect on the direction of PIMCO Access i.e., PIMCO Access and John Hancock go up and down completely randomly.
Pair Corralation between PIMCO Access and John Hancock
Given the investment horizon of 90 days PIMCO Access Income is expected to generate 1.19 times more return on investment than John Hancock. However, PIMCO Access is 1.19 times more volatile than John Hancock Hedged. It trades about 0.33 of its potential returns per unit of risk. John Hancock Hedged is currently generating about 0.05 per unit of risk. If you would invest 1,563 in PIMCO Access Income on August 29, 2024 and sell it today you would earn a total of 93.00 from holding PIMCO Access Income or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PIMCO Access Income vs. John Hancock Hedged
Performance |
| Timeline |
| PIMCO Access Income |
| John Hancock Hedged |
PIMCO Access and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PIMCO Access and John Hancock
The main advantage of trading using opposite PIMCO Access and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PIMCO Access 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.| PIMCO Access vs. Pimco Dynamic Income | PIMCO Access vs. Pimco Corporate Income | PIMCO Access vs. Doubleline Yield Opportunities | PIMCO Access vs. Cohen Steers Reit |
| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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