Correlation Between John Hancock and Allianzgi Equity

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

By analyzing existing cross correlation between John Hancock Income and Allianzgi Equity Convertible, you can compare the effects of market volatilities on John Hancock and Allianzgi Equity 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 Allianzgi Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Allianzgi Equity.

Diversification Opportunities for John Hancock and Allianzgi Equity

-0.51

Correlation Coefficient

John Hancock  Allianzgi Equity

Excellent diversification

The 3 months correlation between John and Allianzgi is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Allianzgi Equity Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Equity Con 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 Income are associated (or correlated) with Allianzgi Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Equity Con has no effect on the direction of John Hancock i.e., John Hancock and Allianzgi Equity go up and down completely randomly.

Pair Corralation between John Hancock and Allianzgi Equity

Considering the 90-day investment horizon John Hancock Income is expected to generate 0.41 times more return on investment than Allianzgi Equity. However, John Hancock Income is 2.43 times less risky than Allianzgi Equity. It trades about 0.04 of its potential returns per unit of risk. Allianzgi Equity Convertible is currently generating about -0.07 per unit of risk. If you would invest  1,113  in John Hancock Income on December 25, 2024 and sell it today you would earn a total of  12.00  from holding John Hancock Income or generate 1.08% return on investment over 90 days.

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

John Hancock Income  vs.  Allianzgi Equity Convertible

John Hancock Income

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Income are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, John Hancock is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Allianzgi Equity Con

Risk-Adjusted Performance

Very Weak

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

Pair Trading with John Hancock and Allianzgi Equity

The main advantage of trading using opposite John Hancock and Allianzgi Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Allianzgi Equity 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 Allianzgi Equity will offset losses from the drop in Allianzgi Equity's long position.

The idea behind John Hancock Income and Allianzgi Equity Convertible 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.