Correlation Between Neuberger Berman and John Hancock

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

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

Diversification Opportunities for Neuberger Berman and John Hancock

0.84

Correlation Coefficient

Neuberger Berman  John Hancock

Very poor diversification

The 3 months correlation between Neuberger and John is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman IMF and John Hancock Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Neuberger Berman 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 Neuberger Berman IMF 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 Tax has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and John Hancock go up and down completely randomly.

Pair Corralation between Neuberger Berman and John Hancock

Considering the 90-day investment horizon Neuberger Berman is expected to generate 2.15 times less return on investment than John Hancock. But when comparing it to its historical volatility, Neuberger Berman IMF is 1.3 times less risky than John Hancock. It trades about 0.09 of its potential returns per unit of risk. John Hancock Tax is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,175  in John Hancock Tax on December 28, 2024 and sell it today you would earn a total of  174.00  from holding John Hancock Tax or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Neuberger Berman IMF  vs.  John Hancock Tax

Neuberger Berman IMF

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman IMF are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental drivers, Neuberger Berman is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

John Hancock Tax

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Tax are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather inconsistent basic indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Neuberger Berman and John Hancock

The main advantage of trading using opposite Neuberger Berman and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman 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 Neuberger Berman IMF and John Hancock Tax 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..