Correlation Between John Hancock and Thrivent High
Can any of the company-specific risk be diversified away by investing in both John Hancock and Thrivent 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 Thrivent 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 Thrivent High Yield, you can compare the effects of market volatilities on John Hancock and Thrivent 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 Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Thrivent High.
Diversification Opportunities for John Hancock and Thrivent High
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Thrivent is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent 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 Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of John Hancock i.e., John Hancock and Thrivent High go up and down completely randomly.
Pair Corralation between John Hancock and Thrivent High
Assuming the 90 days horizon John Hancock Global is expected to generate 3.05 times more return on investment than Thrivent High. However, John Hancock is 3.05 times more volatile than Thrivent High Yield. It trades about 0.14 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.13 per unit of risk. If you would invest 1,133 in John Hancock Global on December 28, 2024 and sell it today you would earn a total of 64.00 from holding John Hancock Global or generate 5.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Global vs. Thrivent High Yield
Performance |
Timeline |
John Hancock Global |
Thrivent High Yield |
John Hancock and Thrivent High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Thrivent High
The main advantage of trading using opposite John Hancock and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Thrivent 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 Thrivent High will offset losses from the drop in Thrivent High's long position.John Hancock vs. Retirement Living Through | John Hancock vs. T Rowe Price | John Hancock vs. Fidelity Managed Retirement | John Hancock vs. Blackrock Moderate Prepared |
Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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