Correlation Between John Hancock and William Blair
Can any of the company-specific risk be diversified away by investing in both John Hancock and William Blair 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 William Blair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and William Blair Growth, you can compare the effects of market volatilities on John Hancock and William Blair 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 William Blair. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and William Blair.
Diversification Opportunities for John Hancock and William Blair
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and WILLIAM is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and William Blair Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Growth 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 Global are associated (or correlated) with William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Growth has no effect on the direction of John Hancock i.e., John Hancock and William Blair go up and down completely randomly.
Pair Corralation between John Hancock and William Blair
Assuming the 90 days horizon John Hancock is expected to generate 1.43 times less return on investment than William Blair. But when comparing it to its historical volatility, John Hancock Global is 1.8 times less risky than William Blair. It trades about 0.08 of its potential returns per unit of risk. William Blair Growth is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 873.00 in William Blair Growth on September 4, 2024 and sell it today you would earn a total of 345.00 from holding William Blair Growth or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Global vs. William Blair Growth
Performance |
| Timeline |
| John Hancock Global |
| William Blair Growth |
John Hancock and William Blair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and William Blair
The main advantage of trading using opposite John Hancock and William Blair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, William Blair 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 William Blair will offset losses from the drop in William Blair's long position.| John Hancock vs. Clearbridge Energy Mlp | John Hancock vs. Tortoise Energy Independence | John Hancock vs. Invesco Energy Fund | John Hancock vs. Adams Natural Resources |
| William Blair vs. William Blair International | William Blair vs. Eagle Small Cap | William Blair vs. William Blair Small | William Blair vs. Victory Munder Mid Cap |
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.
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