Correlation Between John Hancock and Lazard Emerging
Can any of the company-specific risk be diversified away by investing in both John Hancock and Lazard Emerging 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 Lazard Emerging 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 Lazard Emerging Markets, you can compare the effects of market volatilities on John Hancock and Lazard Emerging 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 Lazard Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Lazard Emerging.
Diversification Opportunities for John Hancock and Lazard Emerging
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Lazard is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Lazard Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Emerging Markets 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 Lazard Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Emerging Markets has no effect on the direction of John Hancock i.e., John Hancock and Lazard Emerging go up and down completely randomly.
Pair Corralation between John Hancock and Lazard Emerging
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.44 times more return on investment than Lazard Emerging. However, John Hancock is 2.44 times more volatile than Lazard Emerging Markets. It trades about 0.05 of its potential returns per unit of risk. Lazard Emerging Markets is currently generating about 0.08 per unit of risk. If you would invest 2,799 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 1,141 from holding John Hancock Financial or generate 40.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Lazard Emerging Markets
Performance |
| Timeline |
| John Hancock Financial |
| Lazard Emerging Markets |
John Hancock and Lazard Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Lazard Emerging
The main advantage of trading using opposite John Hancock and Lazard Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Lazard Emerging 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 Lazard Emerging will offset losses from the drop in Lazard Emerging'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 |
| Lazard Emerging vs. Mesirow Financial Small | Lazard Emerging vs. John Hancock Financial | Lazard Emerging vs. Blackrock Financial Institutions | Lazard Emerging vs. Prudential Jennison Financial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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