Correlation Between John Hancock and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both John Hancock and Franklin Liberty 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 Franklin Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Multifactor and Franklin Liberty Low, you can compare the effects of market volatilities on John Hancock and Franklin Liberty 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 Franklin Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Franklin Liberty.
Diversification Opportunities for John Hancock and Franklin Liberty
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Franklin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and Franklin Liberty Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Low 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 Multifactor are associated (or correlated) with Franklin Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Low has no effect on the direction of John Hancock i.e., John Hancock and Franklin Liberty go up and down completely randomly.
Pair Corralation between John Hancock and Franklin Liberty
If you would invest 6,896 in John Hancock Multifactor on September 2, 2024 and sell it today you would earn a total of 429.00 from holding John Hancock Multifactor or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
John Hancock Multifactor vs. Franklin Liberty Low
Performance |
| Timeline |
| John Hancock Multifactor |
| Franklin Liberty Low |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Franklin Liberty
The main advantage of trading using opposite John Hancock and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Franklin Liberty 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 Franklin Liberty will offset losses from the drop in Franklin Liberty's long position.| John Hancock vs. John Hancock Multifactor | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. iShares Equity Factor | John Hancock vs. John Hancock Multifactor |
| Franklin Liberty vs. Franklin Liberty Short | Franklin Liberty vs. Franklin LibertyQ Equity | Franklin Liberty vs. iShares Currency Hedged | Franklin Liberty vs. Franklin LibertyQ Mid |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |