Correlation Between Amg Yacktman and John Hancock
Can any of the company-specific risk be diversified away by investing in both Amg Yacktman 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 Amg Yacktman and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Yacktman Special and John Hancock Financial, you can compare the effects of market volatilities on Amg Yacktman 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 Amg Yacktman with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Yacktman and John Hancock.
Diversification Opportunities for Amg Yacktman and John Hancock
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and John is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amg Yacktman Special and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Amg Yacktman 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 Amg Yacktman Special 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 Financial has no effect on the direction of Amg Yacktman i.e., Amg Yacktman and John Hancock go up and down completely randomly.
Pair Corralation between Amg Yacktman and John Hancock
Assuming the 90 days horizon Amg Yacktman Special is expected to under-perform the John Hancock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Yacktman Special is 2.66 times less risky than John Hancock. The mutual fund trades about -0.17 of its potential returns per unit of risk. The John Hancock Financial is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,532 in John Hancock Financial on November 3, 2024 and sell it today you would earn a total of 219.00 from holding John Hancock Financial or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Amg Yacktman Special vs. John Hancock Financial
Performance |
| Timeline |
| Amg Yacktman Special |
| John Hancock Financial |
Amg Yacktman and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Yacktman and John Hancock
The main advantage of trading using opposite Amg Yacktman and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Yacktman 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.| Amg Yacktman vs. Gmo Emerging Ntry | Amg Yacktman vs. Ab Bond Inflation | Amg Yacktman vs. Goldman Sachs Short | Amg Yacktman vs. Angel Oak Financial |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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