Correlation Between Calvert Moderate and John Hancock
Can any of the company-specific risk be diversified away by investing in both Calvert Moderate 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 Moderate 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 Moderate Allocation and John Hancock Disciplined, you can compare the effects of market volatilities on Calvert Moderate 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 Moderate with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Moderate and John Hancock.
Diversification Opportunities for Calvert Moderate and John Hancock
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and John is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Moderate Allocation and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Calvert Moderate 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 Moderate Allocation 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 Disciplined has no effect on the direction of Calvert Moderate i.e., Calvert Moderate and John Hancock go up and down completely randomly.
Pair Corralation between Calvert Moderate and John Hancock
Assuming the 90 days horizon Calvert Moderate is expected to generate 2.49 times less return on investment than John Hancock. But when comparing it to its historical volatility, Calvert Moderate Allocation is 1.51 times less risky than John Hancock. It trades about 0.06 of its potential returns per unit of risk. John Hancock Disciplined is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,075 in John Hancock Disciplined on September 2, 2024 and sell it today you would earn a total of 799.00 from holding John Hancock Disciplined or generate 38.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Moderate Allocation vs. John Hancock Disciplined
Performance |
| Timeline |
| Calvert Moderate All |
| John Hancock Disciplined |
Calvert Moderate and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Moderate and John Hancock
The main advantage of trading using opposite Calvert Moderate and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Moderate 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 Moderate vs. Calvert Developed Market | Calvert Moderate vs. Calvert Developed Market | Calvert Moderate vs. Calvert Short Duration | Calvert Moderate vs. Calvert International Responsible |
| John Hancock vs. Dws Emerging Markets | John Hancock vs. Ep Emerging Markets | John Hancock vs. Ashmore Emerging Markets | John Hancock vs. Eagle Mlp Strategy |
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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