Correlation Between Franklin Adjustable and John Hancock
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable 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 Franklin Adjustable and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and John Hancock Strategic, you can compare the effects of market volatilities on Franklin Adjustable 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 Franklin Adjustable with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and John Hancock.
Diversification Opportunities for Franklin Adjustable and John Hancock
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and John is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Franklin Adjustable 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 Franklin Adjustable Government 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 Strategic has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and John Hancock go up and down completely randomly.
Pair Corralation between Franklin Adjustable and John Hancock
Assuming the 90 days horizon Franklin Adjustable is expected to generate 6.18 times less return on investment than John Hancock. But when comparing it to its historical volatility, Franklin Adjustable Government is 9.35 times less risky than John Hancock. It trades about 0.13 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,810 in John Hancock Strategic on October 25, 2024 and sell it today you would earn a total of 980.00 from holding John Hancock Strategic or generate 54.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Franklin Adjustable Government vs. John Hancock Strategic
Performance |
| Timeline |
| Franklin Adjustable |
| John Hancock Strategic |
Franklin Adjustable and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and John Hancock
The main advantage of trading using opposite Franklin Adjustable and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable 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.| Franklin Adjustable vs. Ashmore Emerging Markets | Franklin Adjustable vs. Dws Emerging Markets | Franklin Adjustable vs. Ultraemerging Markets Profund | Franklin Adjustable vs. Sp Midcap Index |
| John Hancock vs. Nasdaq 100 Index Fund | John Hancock vs. Qs Small Capitalization | John Hancock vs. Growth Fund Of | John Hancock vs. Rbb Fund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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