Correlation Between Vanguard Mid-cap and John Hancock
Can any of the company-specific risk be diversified away by investing in both Vanguard Mid-cap 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 Vanguard Mid-cap and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Mid Cap Value and John Hancock Disciplined, you can compare the effects of market volatilities on Vanguard Mid-cap 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 Vanguard Mid-cap with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Mid-cap and John Hancock.
Diversification Opportunities for Vanguard Mid-cap and John Hancock
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and John is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mid Cap Value 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 Vanguard Mid-cap 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 Vanguard Mid Cap Value 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 Vanguard Mid-cap i.e., Vanguard Mid-cap and John Hancock go up and down completely randomly.
Pair Corralation between Vanguard Mid-cap and John Hancock
Assuming the 90 days horizon Vanguard Mid Cap Value is expected to generate 0.86 times more return on investment than John Hancock. However, Vanguard Mid Cap Value is 1.16 times less risky than John Hancock. It trades about 0.13 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.08 per unit of risk. If you would invest 5,766 in Vanguard Mid Cap Value on August 27, 2024 and sell it today you would earn a total of 1,092 from holding Vanguard Mid Cap Value or generate 18.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Mid Cap Value vs. John Hancock Disciplined
Performance |
| Timeline |
| Vanguard Mid Cap |
| John Hancock Disciplined |
Vanguard Mid-cap and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Mid-cap and John Hancock
The main advantage of trading using opposite Vanguard Mid-cap and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Mid-cap 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.| Vanguard Mid-cap vs. Vanguard Materials Index | Vanguard Mid-cap vs. Vanguard Limited Term Tax Exempt | Vanguard Mid-cap vs. Vanguard Limited Term Tax Exempt | Vanguard Mid-cap vs. Vanguard Global Minimum |
| John Hancock vs. New World Fund | John Hancock vs. Bond Fund Of | John Hancock vs. Washington Mutual Investors | John Hancock vs. Europacific Growth Fund |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |