Correlation Between Angel Oak and John Hancock
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and John Hancock Government, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and John Hancock.
Diversification Opportunities for Angel Oak and John Hancock
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and John is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Angel Oak 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 Angel Oak Financial 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 Government has no effect on the direction of Angel Oak i.e., Angel Oak and John Hancock go up and down completely randomly.
Pair Corralation between Angel Oak and John Hancock
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.62 times more return on investment than John Hancock. However, Angel Oak Financial is 1.62 times less risky than John Hancock. It trades about 0.1 of its potential returns per unit of risk. John Hancock Government is currently generating about -0.02 per unit of risk. If you would invest 1,403 in Angel Oak Financial on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Angel Oak Financial or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. John Hancock Government
Performance |
| Timeline |
| Angel Oak Financial |
| John Hancock Government |
Angel Oak and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and John Hancock
The main advantage of trading using opposite Angel Oak and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Shelton Emerging Markets | Angel Oak vs. Pace International Emerging | Angel Oak vs. Rbc Emerging Markets | Angel Oak vs. Vy Jpmorgan Emerging |
| John Hancock vs. Angel Oak Financial | John Hancock vs. Goldman Sachs Financial | John Hancock vs. Transamerica Financial Life | John Hancock vs. Davis Financial 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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