Correlation Between Amg Managers and John Hancock
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Skyline and John Hancock Disciplined, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and John Hancock.
Diversification Opportunities for Amg Managers and John Hancock
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and John is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Skyline and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Amg Managers 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 Amg Managers Skyline 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 Disciplined has no effect on the direction of Amg Managers i.e., Amg Managers and John Hancock go up and down completely randomly.
Pair Corralation between Amg Managers and John Hancock
Assuming the 90 days horizon Amg Managers is expected to generate 1.07 times less return on investment than John Hancock. In addition to that, Amg Managers is 1.43 times more volatile than John Hancock Disciplined. It trades about 0.05 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.08 per unit of volatility. If you would invest 2,054 in John Hancock Disciplined on August 30, 2024 and sell it today you would earn a total of 811.00 from holding John Hancock Disciplined or generate 39.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Skyline vs. John Hancock Disciplined
Performance |
| Timeline |
| Amg Managers Skyline |
| John Hancock Disciplined |
Amg Managers and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and John Hancock
The main advantage of trading using opposite Amg Managers and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. American Beacon Bridgeway | Amg Managers vs. John Hancock Disciplined | Amg Managers vs. Large Cap Fund | Amg Managers vs. Baird E Plus |
| John Hancock vs. Artisan Global Unconstrained | John Hancock vs. Morgan Stanley Global | John Hancock vs. Wisdomtree Siegel Global | John Hancock vs. Power Global Tactical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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