Correlation Between Janus Henderson and John Hancock

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

By analyzing existing cross correlation between Janus Henderson Mortgage Backed and John Hancock Exchange Traded, you can compare the effects of market volatilities on Janus Henderson 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 Janus Henderson with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Henderson and John Hancock.

Diversification Opportunities for Janus Henderson and John Hancock

0.83

Correlation Coefficient

Janus Henderson  John Hancock

Very poor diversification

The 3 months correlation between Janus and John is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Janus Henderson Mortgage Backe and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and Janus Henderson 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 Janus Henderson Mortgage Backed 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 Exchange has no effect on the direction of Janus Henderson i.e., Janus Henderson and John Hancock go up and down completely randomly.

Pair Corralation between Janus Henderson and John Hancock

Given the investment horizon of 90 days Janus Henderson is expected to generate 1.87 times less return on investment than John Hancock. In addition to that, Janus Henderson is 1.02 times more volatile than John Hancock Exchange Traded. It trades about 0.02 of its total potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.03 per unit of volatility. If you would invest  2,004  in John Hancock Exchange Traded on October 10, 2024 and sell it today you would earn a total of  126.00  from holding John Hancock Exchange Traded or generate 6.29% return on investment over 90 days.

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

Janus Henderson Mortgage Backe  vs.  John Hancock Exchange Traded

Janus Henderson Mort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Janus Henderson Mortgage Backed has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Janus Henderson is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

John Hancock Exchange

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, John Hancock is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Janus Henderson and John Hancock

The main advantage of trading using opposite Janus Henderson and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Henderson 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 Janus Henderson Mortgage Backed and John Hancock Exchange Traded 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.