Correlation Between Total Return and John Hancock
Can any of the company-specific risk be diversified away by investing in both Total Return 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 Total Return and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Return Bond and John Hancock Income, you can compare the effects of market volatilities on Total Return 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 Total Return with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Return and John Hancock.
Diversification Opportunities for Total Return and John Hancock
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Total and John is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Total Return Bond and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Total Return 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 Total Return Bond 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 Income has no effect on the direction of Total Return i.e., Total Return and John Hancock go up and down completely randomly.
Pair Corralation between Total Return and John Hancock
Assuming the 90 days horizon Total Return Bond is expected to generate 0.19 times more return on investment than John Hancock. However, Total Return Bond is 5.15 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.02 per unit of risk. If you would invest 956.00 in Total Return Bond on September 11, 2025 and sell it today you would earn a total of 8.00 from holding Total Return Bond or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Total Return Bond vs. John Hancock Income
Performance |
| Timeline |
| Total Return Bond |
| John Hancock Income |
Total Return and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Return and John Hancock
The main advantage of trading using opposite Total Return and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Return 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.| Total Return vs. Greenspring Fund Retail | Total Return vs. Platinum Asia Investments | Total Return vs. Flaherty Crumrine Preferred | Total Return vs. Rare Global Infrastructure |
| John Hancock vs. John Hancock Investors | John Hancock vs. Flaherty Crumrine Preferred | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. Transamerica Mlp Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |