Correlation Between John Hancock and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both John Hancock and Munivest Fund 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 Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Investors and Munivest Fund, you can compare the effects of market volatilities on John Hancock and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Munivest Fund.
Diversification Opportunities for John Hancock and Munivest Fund
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Munivest is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investors and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Investors are associated (or correlated) with Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of John Hancock i.e., John Hancock and Munivest Fund go up and down completely randomly.
Pair Corralation between John Hancock and Munivest Fund
Considering the 90-day investment horizon John Hancock Investors is expected to generate 0.58 times more return on investment than Munivest Fund. However, John Hancock Investors is 1.74 times less risky than Munivest Fund. It trades about 0.16 of its potential returns per unit of risk. Munivest Fund is currently generating about -0.08 per unit of risk. If you would invest 1,337 in John Hancock Investors on September 15, 2024 and sell it today you would earn a total of 52.00 from holding John Hancock Investors or generate 3.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Investors vs. Munivest Fund
Performance |
Timeline |
John Hancock Investors |
Munivest Fund |
John Hancock and Munivest Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Munivest Fund
The main advantage of trading using opposite John Hancock and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.John Hancock vs. DTF Tax Free | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. Nuveen California Select |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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