Correlation Between Pax High and John Hancock
Can any of the company-specific risk be diversified away by investing in both Pax High 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 Pax High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pax High Yield and John Hancock Money, you can compare the effects of market volatilities on Pax High 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 Pax High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pax High and John Hancock.
Diversification Opportunities for Pax High and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pax and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pax High Yield and John Hancock Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Money and Pax High 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 Pax High Yield 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 Money has no effect on the direction of Pax High i.e., Pax High and John Hancock go up and down completely randomly.
Pair Corralation between Pax High and John Hancock
If you would invest 601.00 in Pax High Yield on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Pax High Yield or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Pax High Yield vs. John Hancock Money
Performance |
| Timeline |
| Pax High Yield |
| John Hancock Money |
Pax High and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pax High and John Hancock
The main advantage of trading using opposite Pax High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pax High 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.| Pax High vs. Technology Ultrasector Profund | Pax High vs. Global Technology Portfolio | Pax High vs. Science Technology Fund | Pax High vs. Columbia Global Technology |
| John Hancock vs. Alliancebernstein Global Highome | John Hancock vs. Investec Global Franchise | John Hancock vs. Dreyfusstandish Global Fixed | John Hancock vs. Qs Global Equity |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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