Correlation Between Ambrus Core and John Hancock
Can any of the company-specific risk be diversified away by investing in both Ambrus Core 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 Ambrus Core and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and John Hancock Global, you can compare the effects of market volatilities on Ambrus Core 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 Ambrus Core with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and John Hancock.
Diversification Opportunities for Ambrus Core and John Hancock
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ambrus and John is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Ambrus Core 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 Ambrus Core Bond 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 Global has no effect on the direction of Ambrus Core i.e., Ambrus Core and John Hancock go up and down completely randomly.
Pair Corralation between Ambrus Core and John Hancock
Assuming the 90 days horizon Ambrus Core is expected to generate 1.1 times less return on investment than John Hancock. But when comparing it to its historical volatility, Ambrus Core Bond is 3.15 times less risky than John Hancock. It trades about 0.2 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,234 in John Hancock Global on September 14, 2024 and sell it today you would earn a total of 8.00 from holding John Hancock Global or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. John Hancock Global
Performance |
| Timeline |
| Ambrus Core Bond |
| John Hancock Global |
Ambrus Core and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and John Hancock
The main advantage of trading using opposite Ambrus Core and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core 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.| Ambrus Core vs. Blackrock Short Term Inflat Protected | Ambrus Core vs. Barings Active Short | Ambrus Core vs. Virtus Multi Sector Short | Ambrus Core vs. Aqr Long Short Equity |
| John Hancock vs. The National Tax Free | John Hancock vs. Doubleline Yield Opportunities | John Hancock vs. Ambrus Core Bond | John Hancock vs. T Rowe Price |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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