Correlation Between Virtus High and John Hancock
Can any of the company-specific risk be diversified away by investing in both Virtus High 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 Virtus High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus High Yield and John Hancock Strategic, you can compare the effects of market volatilities on Virtus High 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 Virtus High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and John Hancock.
Diversification Opportunities for Virtus High and John Hancock
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and John is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Virtus High 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 Virtus High Yield 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 Strategic has no effect on the direction of Virtus High i.e., Virtus High and John Hancock go up and down completely randomly.
Pair Corralation between Virtus High and John Hancock
Assuming the 90 days horizon Virtus High is expected to generate 2.74 times less return on investment than John Hancock. But when comparing it to its historical volatility, Virtus High Yield is 3.61 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,711 in John Hancock Strategic on October 9, 2024 and sell it today you would earn a total of 1,026 from holding John Hancock Strategic or generate 59.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus High Yield vs. John Hancock Strategic
Performance |
| Timeline |
| Virtus High Yield |
| John Hancock Strategic |
Virtus High and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus High and John Hancock
The main advantage of trading using opposite Virtus High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High 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.| Virtus High vs. Virtus Multi Strategy Target | Virtus High vs. Virtus Multi Sector Short | Virtus High vs. Ridgeworth Seix High | Virtus High vs. Ridgeworth Innovative Growth |
| John Hancock vs. Franklin Adjustable Government | John Hancock vs. T Rowe Price | John Hancock vs. Gurtin California Muni | John Hancock vs. Fidelity California Municipal |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |