Correlation Between American Beacon and John Hancock
Can any of the company-specific risk be diversified away by investing in both American Beacon 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 American Beacon and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Mid Cap and John Hancock Disciplined, you can compare the effects of market volatilities on American Beacon 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 American Beacon with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and John Hancock.
Diversification Opportunities for American Beacon and John Hancock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Mid Cap and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and American Beacon 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 American Beacon Mid Cap 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 Disciplined has no effect on the direction of American Beacon i.e., American Beacon and John Hancock go up and down completely randomly.
Pair Corralation between American Beacon and John Hancock
If you would invest (100.00) in American Beacon Mid Cap on January 21, 2024 and sell it today you would earn a total of 100.00 from holding American Beacon Mid Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Beacon Mid Cap vs. John Hancock Disciplined
Performance |
| Timeline |
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Disciplined |
American Beacon and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and John Hancock
The main advantage of trading using opposite American Beacon and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon 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.| American Beacon vs. T Rowe Price | American Beacon vs. Balanced Fund Investor | American Beacon vs. T Rowe Price | American Beacon vs. Fa 529 Aggressive |
| John Hancock vs. New World Fund | John Hancock vs. Bond Fund Of | John Hancock vs. Washington Mutual Investors | John Hancock vs. Europacific Growth Fund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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