Correlation Between Valic Company and John Hancock
Can any of the company-specific risk be diversified away by investing in both Valic Company 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 Valic Company and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and John Hancock Income, you can compare the effects of market volatilities on Valic Company 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 Valic Company with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and John Hancock.
Diversification Opportunities for Valic Company and John Hancock
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Valic and John is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Valic Company 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 Valic Company I 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 Income has no effect on the direction of Valic Company i.e., Valic Company and John Hancock go up and down completely randomly.
Pair Corralation between Valic Company and John Hancock
Assuming the 90 days horizon Valic Company I is expected to generate 6.5 times more return on investment than John Hancock. However, Valic Company is 6.5 times more volatile than John Hancock Income. It trades about 0.1 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.0 per unit of risk. If you would invest 1,301 in Valic Company I on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Valic Company I or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. John Hancock Income
Performance |
| Timeline |
| Valic Company I |
| John Hancock Income |
Valic Company and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and John Hancock
The main advantage of trading using opposite Valic Company and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company 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.| Valic Company vs. Mid Cap Index | Valic Company vs. Mid Cap Strategic | Valic Company vs. Valic Company I | Valic Company vs. Valic Company I |
| John Hancock vs. Queens Road Small | John Hancock vs. Valic Company I | John Hancock vs. Vanguard Small Cap Value | John Hancock vs. Royce Opportunity 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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