Correlation Between John Hancock and Janus High
Can any of the company-specific risk be diversified away by investing in both John Hancock and Janus High 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 Janus High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and Janus High Yield Fund, you can compare the effects of market volatilities on John Hancock and Janus High 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 Janus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Janus High.
Diversification Opportunities for John Hancock and Janus High
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Janus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Janus High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus High Yield 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 Global are associated (or correlated) with Janus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus High Yield has no effect on the direction of John Hancock i.e., John Hancock and Janus High go up and down completely randomly.
Pair Corralation between John Hancock and Janus High
Assuming the 90 days horizon John Hancock Global is expected to under-perform the Janus High. In addition to that, John Hancock is 4.74 times more volatile than Janus High Yield Fund. It trades about -0.38 of its total potential returns per unit of risk. Janus High Yield Fund is currently generating about -0.25 per unit of volatility. If you would invest 739.00 in Janus High Yield Fund on September 24, 2024 and sell it today you would lose (6.00) from holding Janus High Yield Fund or give up 0.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Global vs. Janus High Yield Fund
Performance |
Timeline |
John Hancock Global |
Janus High Yield |
John Hancock and Janus High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Janus High
The main advantage of trading using opposite John Hancock and Janus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Janus High 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 Janus High will offset losses from the drop in Janus High's long position.John Hancock vs. Janus High Yield Fund | John Hancock vs. Pax High Yield | John Hancock vs. Artisan High Income | John Hancock vs. Blackrock High Yield |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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