Correlation Between Morgan Stanley and John Hancock
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley 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 Morgan Stanley and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Global and John Hancock Strategic, you can compare the effects of market volatilities on Morgan Stanley 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 Morgan Stanley with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and John Hancock.
Diversification Opportunities for Morgan Stanley and John Hancock
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Morgan and John is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Global and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Morgan Stanley 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 Morgan Stanley 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 Strategic has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and John Hancock go up and down completely randomly.
Pair Corralation between Morgan Stanley and John Hancock
Assuming the 90 days horizon Morgan Stanley is expected to generate 1.38 times less return on investment than John Hancock. In addition to that, Morgan Stanley is 1.01 times more volatile than John Hancock Strategic. It trades about 0.16 of its total potential returns per unit of risk. John Hancock Strategic is currently generating about 0.23 per unit of volatility. If you would invest 2,702 in John Hancock Strategic on June 3, 2025 and sell it today you would earn a total of 293.00 from holding John Hancock Strategic or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley Global vs. John Hancock Strategic
Performance |
| Timeline |
| Morgan Stanley Global |
| John Hancock Strategic |
Morgan Stanley and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and John Hancock
The main advantage of trading using opposite Morgan Stanley and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley 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.| Morgan Stanley vs. Guidepath Conservative Income | Morgan Stanley vs. Lord Abbett Diversified | Morgan Stanley vs. Victory Diversified Stock | Morgan Stanley vs. Tax Free Conservative Income |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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