Correlation Between John Hancock and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Ladenburg Growth 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 Ladenburg Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Government and Ladenburg Growth Income, you can compare the effects of market volatilities on John Hancock and Ladenburg Growth 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 Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Ladenburg Growth.
Diversification Opportunities for John Hancock and Ladenburg Growth
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Ladenburg is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Ladenburg Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth Income 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 Government are associated (or correlated) with Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth Income has no effect on the direction of John Hancock i.e., John Hancock and Ladenburg Growth go up and down completely randomly.
Pair Corralation between John Hancock and Ladenburg Growth
Assuming the 90 days horizon John Hancock is expected to generate 9.68 times less return on investment than Ladenburg Growth. But when comparing it to its historical volatility, John Hancock Government is 1.39 times less risky than Ladenburg Growth. It trades about 0.01 of its potential returns per unit of risk. Ladenburg Growth Income is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,226 in Ladenburg Growth Income on August 31, 2024 and sell it today you would earn a total of 289.00 from holding Ladenburg Growth Income or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Ladenburg Growth Income
Performance |
| Timeline |
| John Hancock Government |
| Ladenburg Growth Income |
John Hancock and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Ladenburg Growth
The main advantage of trading using opposite John Hancock and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth's long position.| John Hancock vs. International Investors Gold | John Hancock vs. Franklin Gold Precious | John Hancock vs. Short Precious Metals | John Hancock vs. Precious Metals And |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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