Correlation Between John Hancock and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both John Hancock and Calvert Bond 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 John Hancock and Calvert Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Calvert Bond Portfolio, you can compare the effects of market volatilities on John Hancock and Calvert Bond 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 John Hancock with a short position of Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Calvert Bond.
Diversification Opportunities for John Hancock and Calvert Bond
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between John and Calvert is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio and John Hancock 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 John Hancock Financial are associated (or correlated) with Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of John Hancock i.e., John Hancock and Calvert Bond go up and down completely randomly.
Pair Corralation between John Hancock and Calvert Bond
Considering the 90-day investment horizon John Hancock Financial is expected to generate 4.99 times more return on investment than Calvert Bond. However, John Hancock is 4.99 times more volatile than Calvert Bond Portfolio. It trades about 0.02 of its potential returns per unit of risk. Calvert Bond Portfolio is currently generating about 0.04 per unit of risk. If you would invest 3,010 in John Hancock Financial on October 16, 2024 and sell it today you would earn a total of 422.00 from holding John Hancock Financial or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Calvert Bond Portfolio
Performance |
| Timeline |
| John Hancock Financial |
| Calvert Bond Portfolio |
John Hancock and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Calvert Bond
The main advantage of trading using opposite John Hancock and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Calvert Bond vs. Cref Money Market | Calvert Bond vs. Dws Government Money | Calvert Bond vs. Fidelity Government Money | Calvert Bond vs. Ab Government Exchange |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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