Correlation Between Millerhoward High and John Hancock

Can any of the company-specific risk be diversified away by investing in both Millerhoward High 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 Millerhoward High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Millerhoward High Income and John Hancock Tax Advantaged, you can compare the effects of market volatilities on Millerhoward High 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 Millerhoward High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millerhoward High and John Hancock.

Diversification Opportunities for Millerhoward High and John Hancock

0.0

Correlation Coefficient

Millerhoward High  John Hancock

Pay attention - limited upside

The 3 months correlation between Millerhoward and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Millerhoward High Income and John Hancock Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Millerhoward High 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 Millerhoward High Income 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 Tax has no effect on the direction of Millerhoward High i.e., Millerhoward High and John Hancock go up and down completely randomly.

Pair Corralation between Millerhoward High and John Hancock

If you would invest (100.00) in John Hancock Tax Advantaged on December 30, 2024 and sell it today you would earn a total of  100.00  from holding John Hancock Tax Advantaged or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Millerhoward High Income  vs.  John Hancock Tax Advantaged

Millerhoward High Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Millerhoward High Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound forward indicators, Millerhoward High is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

John Hancock Tax

Risk-Adjusted Performance

Very Weak

Over the last 90 days John Hancock Tax Advantaged has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Millerhoward High and John Hancock

The main advantage of trading using opposite Millerhoward High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millerhoward High 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 Millerhoward High Income and John Hancock Tax Advantaged 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.