Correlation Between American Beacon and John Hancock

Specify exactly 2 symbols:
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 Funds, 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

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between American and JVMCX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Mid-Cap and John Hancock Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Funds 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 Funds 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

Assuming the 90 days horizon American Beacon is expected to generate 1.19 times less return on investment than John Hancock. In addition to that, American Beacon is 1.89 times more volatile than John Hancock Funds. It trades about 0.0 of its total potential returns per unit of risk. John Hancock Funds is currently generating about 0.0 per unit of volatility. If you would invest  2,577  in John Hancock Funds on August 28, 2022 and sell it today you would lose (68.00)  from holding John Hancock Funds or give up 2.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.93%
ValuesDaily Returns

American Beacon Mid-Cap  vs.  John Hancock Funds

 Performance (%) 
       Timeline  
American Beacon Mid-Cap 
American Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Beacon Mid-Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, American Beacon may actually be approaching a critical reversion point that can send shares even higher in December 2022.

American Price Channel

John Hancock Funds 
JVMCX Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Funds are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

JVMCX Price Channel

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. John Hancock Funds
The idea behind American Beacon Mid-Cap and John Hancock Funds 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.
John Hancock vs. John Hancock Funds
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go