Correlation Between Strategic Income and John Hancock
Can any of the company-specific risk be diversified away by investing in both Strategic Income 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 Strategic Income and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Income Opportunities and John Hancock Income, you can compare the effects of market volatilities on Strategic Income 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 Strategic Income with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Income and John Hancock.
Diversification Opportunities for Strategic Income and John Hancock
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Strategic and John is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Income Opportunities and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Me and Strategic Income 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 Strategic Income Opportunities 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 Me has no effect on the direction of Strategic Income i.e., Strategic Income and John Hancock go up and down completely randomly.
Pair Corralation between Strategic Income and John Hancock
Assuming the 90 days horizon Strategic Income Opportunities is expected to generate 0.99 times more return on investment than John Hancock. However, Strategic Income Opportunities is 1.01 times less risky than John Hancock. It trades about -0.27 of its potential returns per unit of risk. John Hancock Income is currently generating about -0.27 per unit of risk. If you would invest 990.00 in Strategic Income Opportunities on January 20, 2024 and sell it today you would lose (17.00) from holding Strategic Income Opportunities or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Income Opportunities vs. John Hancock Income
Performance |
| Timeline |
| Strategic Me Opportu |
| John Hancock Me |
Strategic Income and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Income and John Hancock
The main advantage of trading using opposite Strategic Income and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Income 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.| Strategic Income vs. Regional Bank Fund | Strategic Income vs. Regional Bank Fund | Strategic Income vs. Multimanager Lifestyle Moderate | Strategic Income vs. Multimanager Lifestyle Balanced |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |