Correlation Between Pacific Funds and John Hancock
Can any of the company-specific risk be diversified away by investing in both Pacific Funds 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 Pacific Funds and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Funds Strategic and John Hancock Government, you can compare the effects of market volatilities on Pacific Funds 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 Pacific Funds with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Funds and John Hancock.
Diversification Opportunities for Pacific Funds and John Hancock
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacific and John is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Funds Strategic and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Pacific Funds 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 Pacific Funds Strategic 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 Government has no effect on the direction of Pacific Funds i.e., Pacific Funds and John Hancock go up and down completely randomly.
Pair Corralation between Pacific Funds and John Hancock
Assuming the 90 days horizon Pacific Funds Strategic is expected to generate 0.62 times more return on investment than John Hancock. However, Pacific Funds Strategic is 1.61 times less risky than John Hancock. It trades about 0.14 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.02 per unit of risk. If you would invest 937.00 in Pacific Funds Strategic on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Pacific Funds Strategic or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacific Funds Strategic vs. John Hancock Government
Performance |
| Timeline |
| Pacific Funds Strategic |
| John Hancock Government |
Pacific Funds and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Funds and John Hancock
The main advantage of trading using opposite Pacific Funds and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Funds 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.| Pacific Funds vs. Pimco Income Fund | Pacific Funds vs. Pimco Income Fund | Pacific Funds vs. Pimco Incme Fund | Pacific Funds vs. Pimco Income Fund |
| John Hancock vs. Vanguard Gnma Fund | John Hancock vs. Vanguard Intermediate Term Government | John Hancock vs. Us Government Securities | John Hancock vs. Us Government Securities |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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