Correlation Between John Hancock and Legg Mason
Can any of the company-specific risk be diversified away by investing in both John Hancock and Legg Mason 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 Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Money and Legg Mason Bw, you can compare the effects of market volatilities on John Hancock and Legg Mason 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 Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Legg Mason.
Diversification Opportunities for John Hancock and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Legg Mason Bw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Bw 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 Money are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Bw has no effect on the direction of John Hancock i.e., John Hancock and Legg Mason go up and down completely randomly.
Pair Corralation between John Hancock and Legg Mason
If you would invest 100.00 in John Hancock Money on September 12, 2024 and sell it today you would earn a total of 0.00 from holding John Hancock Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Money vs. Legg Mason Bw
Performance |
| Timeline |
| John Hancock Money |
| Legg Mason Bw |
John Hancock and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Legg Mason
The main advantage of trading using opposite John Hancock and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| John Hancock vs. Transamerica Financial Life | John Hancock vs. Vanguard Financials Index | John Hancock vs. Blackrock Financial Institutions | John Hancock vs. Goldman Sachs Financial |
| Legg Mason vs. Hewitt Money Market | Legg Mason vs. John Hancock Money | Legg Mason vs. Hsbc Treasury Money | Legg Mason vs. Chestnut Street Exchange |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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