Correlation Between John Hancock and Clough Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Clough Global 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 Clough Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Hedged and Clough Global Allocation, you can compare the effects of market volatilities on John Hancock and Clough Global 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 Clough Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Clough Global.
Diversification Opportunities for John Hancock and Clough Global
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Clough is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Hedged and Clough Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clough Global Allocation 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 Hedged are associated (or correlated) with Clough Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clough Global Allocation has no effect on the direction of John Hancock i.e., John Hancock and Clough Global go up and down completely randomly.
Pair Corralation between John Hancock and Clough Global
Considering the 90-day investment horizon John Hancock Hedged is expected to under-perform the Clough Global. But the etf apears to be less risky and, when comparing its historical volatility, John Hancock Hedged is 1.19 times less risky than Clough Global. The etf trades about -0.14 of its potential returns per unit of risk. The Clough Global Allocation is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 563.00 in Clough Global Allocation on November 4, 2024 and sell it today you would lose (15.00) from holding Clough Global Allocation or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Hedged vs. Clough Global Allocation
Performance |
| Timeline |
| John Hancock Hedged |
| Clough Global Allocation |
John Hancock and Clough Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Clough Global
The main advantage of trading using opposite John Hancock and Clough Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Clough Global 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 Clough Global will offset losses from the drop in Clough Global's long position.| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
| Clough Global vs. Clough Global Opportunities | Clough Global vs. Voya Asia Pacific | Clough Global vs. Allianzgi Convertible Income | Clough Global vs. Nuveen Municipal Credit |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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