Correlation Between Invesco Global and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Invesco Global 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 Invesco Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Strategic and John Hancock Income, you can compare the effects of market volatilities on Invesco Global 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 Invesco Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and John Hancock.

Diversification Opportunities for Invesco Global and John Hancock

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Invesco and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Strategic 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 Invesco Global 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 Invesco Global Strategic 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 Invesco Global i.e., Invesco Global and John Hancock go up and down completely randomly.

Pair Corralation between Invesco Global and John Hancock

If you would invest  308.00  in Invesco Global Strategic on December 30, 2023 and sell it today you would earn a total of  3.00  from holding Invesco Global Strategic or generate 0.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Invesco Global Strategic  vs.  JOHN HANCOCK INCOME

 Performance 
       Timeline  
Invesco Global Strategic 

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Global Strategic are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Invesco Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
John Hancock Income 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days John Hancock Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Invesco Global and John Hancock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Invesco Global and John Hancock

The main advantage of trading using opposite Invesco Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global 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.
The idea behind Invesco Global Strategic and John Hancock Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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