Correlation Between Calvert Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and John Hancock Global, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and John Hancock.
Diversification Opportunities for Calvert Global and John Hancock
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and John is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Calvert Global 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 Calvert Global Energy 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 Global has no effect on the direction of Calvert Global i.e., Calvert Global and John Hancock go up and down completely randomly.
Pair Corralation between Calvert Global and John Hancock
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the John Hancock. In addition to that, Calvert Global is 1.1 times more volatile than John Hancock Global. It trades about -0.25 of its total potential returns per unit of risk. John Hancock Global is currently generating about -0.21 per unit of volatility. If you would invest 1,186 in John Hancock Global on October 7, 2024 and sell it today you would lose (39.00) from holding John Hancock Global or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. John Hancock Global
Performance |
| Timeline |
| Calvert Global Energy |
| John Hancock Global |
Calvert Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and John Hancock
The main advantage of trading using opposite Calvert Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Glg Intl Small | Calvert Global vs. Champlain Small | Calvert Global vs. Rbc Small Cap | Calvert Global vs. Artisan Small Cap |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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