Correlation Between Vy Baron and John Hancock

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

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

Diversification Opportunities for Vy Baron and John Hancock

0.43

Correlation Coefficient

Vy Baron  John Hancock

Very weak diversification

The 3 months correlation between IBSSX and John is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Vy Baron 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 Vy Baron Growth 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 Global has no effect on the direction of Vy Baron i.e., Vy Baron and John Hancock go up and down completely randomly.

Pair Corralation between Vy Baron and John Hancock

Assuming the 90 days horizon Vy Baron is expected to generate 2.54 times less return on investment than John Hancock. In addition to that, Vy Baron is 1.59 times more volatile than John Hancock Global. It trades about 0.03 of its total potential returns per unit of risk. John Hancock Global is currently generating about 0.11 per unit of volatility. If you would invest  1,012  in John Hancock Global on September 23, 2024 and sell it today you would earn a total of  186.00  from holding John Hancock Global or generate 18.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Vy Baron Growth  vs.  John Hancock Global

Vy Baron Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

John Hancock Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Global 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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vy Baron and John Hancock

The main advantage of trading using opposite Vy Baron and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Baron 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 Vy Baron Growth and John Hancock Global 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.