Correlation Between John Hancock and Invesco Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Invesco Global 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 John Hancock and Invesco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Income and Invesco Global Strategic, you can compare the effects of market volatilities on John Hancock and Invesco Global 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 John Hancock with a short position of Invesco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Invesco Global.
Diversification Opportunities for John Hancock and Invesco Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Invesco Global Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Strategic and John Hancock 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 John Hancock Income are associated (or correlated) with Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Strategic has no effect on the direction of John Hancock i.e., John Hancock and Invesco Global go up and down completely randomly.
Pair Corralation between John Hancock and Invesco Global
If you would invest (100.00) in John Hancock Income on January 26, 2024 and sell it today you would earn a total of 100.00 from holding John Hancock Income or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
John Hancock Income vs. Invesco Global Strategic
Performance |
| Timeline |
| John Hancock Me |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Invesco Global Strategic |
John Hancock and Invesco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Invesco Global
The main advantage of trading using opposite John Hancock and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Invesco Global 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 Invesco Global will offset losses from the drop in Invesco Global's long position.| John Hancock vs. Calamos Dynamic Convertible | John Hancock vs. Virtus Convertible | John Hancock vs. Putnam Convertible Incm Gwth | John Hancock vs. Fidelity Sai Convertible |
| Invesco Global vs. Capital World Bond | Invesco Global vs. Capital World Bond | Invesco Global vs. Capital World Bond |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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