Correlation Between Clough Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Clough 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 Clough 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 Clough Global Opportunities and John Hancock Tax Advantaged, you can compare the effects of market volatilities on Clough 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 Clough Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clough Global and John Hancock.
Diversification Opportunities for Clough Global and John Hancock
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clough and John is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Clough Global Opportunities and John Hancock Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Clough 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 Clough Global Opportunities 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 Tax has no effect on the direction of Clough Global i.e., Clough Global and John Hancock go up and down completely randomly.
Pair Corralation between Clough Global and John Hancock
Considering the 90-day investment horizon Clough Global is expected to generate 2.56 times less return on investment than John Hancock. In addition to that, Clough Global is 1.49 times more volatile than John Hancock Tax Advantaged. It trades about 0.08 of its total potential returns per unit of risk. John Hancock Tax Advantaged is currently generating about 0.29 per unit of volatility. If you would invest 457.00 in John Hancock Tax Advantaged on August 31, 2024 and sell it today you would earn a total of 29.00 from holding John Hancock Tax Advantaged or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Clough Global Opportunities vs. John Hancock Tax Advantaged
Performance |
| Timeline |
| Clough Global Opport |
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clough Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clough Global and John Hancock
The main advantage of trading using opposite Clough Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clough 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.| Clough Global vs. MFS Investment Grade | Clough Global vs. Eaton Vance Municipal | Clough Global vs. DTF Tax Free | Clough Global vs. HUMANA INC |
| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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