Correlation Between Voya Cbre and John Hancock

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

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

Diversification Opportunities for Voya Cbre and John Hancock

0.97

Correlation Coefficient

Voya Cbre  John Hancock

Almost no diversification

The 3 months correlation between Voya and John is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya Cbre Global and John Hancock Enduring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Enduring and Voya Cbre 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 Voya Cbre Global 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 Enduring has no effect on the direction of Voya Cbre i.e., Voya Cbre and John Hancock go up and down completely randomly.

Pair Corralation between Voya Cbre and John Hancock

Assuming the 90 days horizon Voya Cbre is expected to generate 1.57 times less return on investment than John Hancock. In addition to that, Voya Cbre is 1.01 times more volatile than John Hancock Enduring. It trades about 0.13 of its total potential returns per unit of risk. John Hancock Enduring is currently generating about 0.21 per unit of volatility. If you would invest  1,445  in John Hancock Enduring on December 28, 2024 and sell it today you would earn a total of  132.00  from holding John Hancock Enduring or generate 9.13% return on investment over 90 days.

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

Voya Cbre Global  vs.  John Hancock Enduring

Voya Cbre Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Cbre Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Voya Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Enduring

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Enduring are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, John Hancock may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Voya Cbre and John Hancock

The main advantage of trading using opposite Voya Cbre and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Cbre 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 Voya Cbre Global and John Hancock Enduring 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 Transaction History module to view history of all your transactions and understand their impact on performance.