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 Disciplined, 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
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virtus and John is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield 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 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 Disciplined 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 3.18 times less return on investment than John Hancock. But when comparing it to its historical volatility, Virtus High Yield is 3.02 times less risky than John Hancock. It trades about 0.31 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,404 in John Hancock Disciplined on October 26, 2024 and sell it today you would earn a total of 100.00 from holding John Hancock Disciplined or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus High Yield vs. John Hancock Disciplined
Performance |
| Timeline |
| Virtus High Yield |
| John Hancock Disciplined |
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. Sit Government Securities | Virtus High vs. Us Government Securities | Virtus High vs. Dreyfus Government Cash | Virtus High vs. Schwab Government Money |
| John Hancock vs. Transamerica High Yield | John Hancock vs. Voya High Yield | John Hancock vs. Virtus High Yield | John Hancock vs. Pace High Yield |
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.
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