Correlation Between Victory Incore and John Hancock
Can any of the company-specific risk be diversified away by investing in both Victory Incore 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 Victory Incore and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Incore Fund and John Hancock Ii, you can compare the effects of market volatilities on Victory Incore 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 Victory Incore with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Incore and John Hancock.
Diversification Opportunities for Victory Incore and John Hancock
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and John is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Victory Incore Fund and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Victory Incore 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 Victory Incore Fund 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 Ii has no effect on the direction of Victory Incore i.e., Victory Incore and John Hancock go up and down completely randomly.
Pair Corralation between Victory Incore and John Hancock
Assuming the 90 days horizon Victory Incore is expected to generate 1.36 times less return on investment than John Hancock. But when comparing it to its historical volatility, Victory Incore Fund is 10.26 times less risky than John Hancock. It trades about 0.15 of its potential returns per unit of risk. John Hancock Ii is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,632 in John Hancock Ii on November 3, 2024 and sell it today you would earn a total of 70.00 from holding John Hancock Ii or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Incore Fund vs. John Hancock Ii
Performance |
| Timeline |
| Victory Incore |
| John Hancock Ii |
Victory Incore and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Incore and John Hancock
The main advantage of trading using opposite Victory Incore and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Incore 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.| Victory Incore vs. Columbia Global Technology | Victory Incore vs. Firsthand Technology Opportunities | Victory Incore vs. Invesco Technology Fund | Victory Incore vs. Vanguard Information Technology |
| John Hancock vs. Barings Active Short | John Hancock vs. Franklin Emerging Market | John Hancock vs. Eagle Mlp Strategy | John Hancock vs. Locorr Market Trend |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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