Correlation Between Allianzgi Health and John Hancock
Can any of the company-specific risk be diversified away by investing in both Allianzgi Health 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 Allianzgi Health and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Health Sciences and John Hancock Var, you can compare the effects of market volatilities on Allianzgi Health 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 Allianzgi Health with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Health and John Hancock.
Diversification Opportunities for Allianzgi Health and John Hancock
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and John is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences and John Hancock Var in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Var and Allianzgi Health 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 Allianzgi Health Sciences 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 Var has no effect on the direction of Allianzgi Health i.e., Allianzgi Health and John Hancock go up and down completely randomly.
Pair Corralation between Allianzgi Health and John Hancock
Assuming the 90 days horizon Allianzgi Health Sciences is expected to under-perform the John Hancock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Health Sciences is 1.16 times less risky than John Hancock. The mutual fund trades about -0.11 of its potential returns per unit of risk. The John Hancock Var is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,070 in John Hancock Var on March 26, 2025 and sell it today you would earn a total of 55.00 from holding John Hancock Var or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Health Sciences vs. John Hancock Var
Performance |
| Timeline |
| Allianzgi Health Sciences |
| John Hancock Var |
Allianzgi Health and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Health and John Hancock
The main advantage of trading using opposite Allianzgi Health and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Health 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.| Allianzgi Health vs. T Rowe Price | Allianzgi Health vs. Schwab Government Money | Allianzgi Health vs. Cref Money Market | Allianzgi Health vs. Edward Jones Money |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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