Correlation Between Voya Cbre and John Hancock
Can any of the company-specific risk be diversified away by investing in both Voya Cbre 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 Voya Cbre and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Cbre Global and John Hancock Enduring, you can compare the effects of market volatilities on Voya Cbre 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 Voya Cbre with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Cbre and John Hancock.
Diversification Opportunities for Voya Cbre and John Hancock
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and John is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Voya Cbre Global and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring and Voya Cbre 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 Voya Cbre Global 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 Enduring has no effect on the direction of Voya Cbre i.e., Voya Cbre and John Hancock go up and down completely randomly.
Pair Corralation between Voya Cbre and John Hancock
Assuming the 90 days horizon Voya Cbre is expected to generate 1.39 times less return on investment than John Hancock. In addition to that, Voya Cbre is 1.13 times more volatile than John Hancock Enduring. It trades about 0.06 of its total potential returns per unit of risk. John Hancock Enduring is currently generating about 0.09 per unit of volatility. If you would invest 1,236 in John Hancock Enduring on August 31, 2024 and sell it today you would earn a total of 318.00 from holding John Hancock Enduring or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Cbre Global vs. John Hancock Enduring
Performance |
| Timeline |
| Voya Cbre Global |
| John Hancock Enduring |
Voya Cbre and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Cbre and John Hancock
The main advantage of trading using opposite Voya Cbre and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Cbre 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.| Voya Cbre vs. Lazard Global Listed | Voya Cbre vs. Lazard Global Listed | Voya Cbre vs. HUMANA INC | Voya Cbre vs. Aquagold International |
| John Hancock vs. Lazard Global Listed | John Hancock vs. Lazard Global Listed | John Hancock vs. HUMANA INC | John Hancock vs. Aquagold International |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |