Correlation Between John Hancock and Western Asset
Can any of the company-specific risk be diversified away by investing in both John Hancock and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on John Hancock and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Western Asset.
Diversification Opportunities for John Hancock and Western Asset
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Western is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of John Hancock i.e., John Hancock and Western Asset go up and down completely randomly.
Pair Corralation between John Hancock and Western Asset
Assuming the 90 days horizon John Hancock Government is expected to under-perform the Western Asset. In addition to that, John Hancock is 1.11 times more volatile than Western Asset Inflation. It trades about -0.07 of its total potential returns per unit of risk. Western Asset Inflation is currently generating about -0.02 per unit of volatility. If you would invest 963.00 in Western Asset Inflation on September 2, 2024 and sell it today you would lose (3.00) from holding Western Asset Inflation or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Western Asset Inflation
Performance |
| Timeline |
| John Hancock Government |
| Western Asset Inflation |
John Hancock and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Western Asset
The main advantage of trading using opposite John Hancock and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| John Hancock vs. Volumetric Fund Volumetric | John Hancock vs. Rbc Microcap Value | John Hancock vs. T Rowe Price | John Hancock vs. Falcon Focus Scv |
| Western Asset vs. Needham Aggressive Growth | Western Asset vs. Legg Mason Partners | Western Asset vs. Lgm Risk Managed | Western Asset vs. Franklin High Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |