Correlation Between John Hancock and Laudus Us
Can any of the company-specific risk be diversified away by investing in both John Hancock and Laudus Us 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 Laudus Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Laudus Large Cap, you can compare the effects of market volatilities on John Hancock and Laudus Us 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 Laudus Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Laudus Us.
Diversification Opportunities for John Hancock and Laudus Us
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Laudus is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Laudus Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laudus Large Cap 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 Disciplined are associated (or correlated) with Laudus Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laudus Large Cap has no effect on the direction of John Hancock i.e., John Hancock and Laudus Us go up and down completely randomly.
Pair Corralation between John Hancock and Laudus Us
Assuming the 90 days horizon John Hancock is expected to generate 1.09 times less return on investment than Laudus Us. But when comparing it to its historical volatility, John Hancock Disciplined is 1.62 times less risky than Laudus Us. It trades about 0.08 of its potential returns per unit of risk. Laudus Large Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,037 in Laudus Large Cap on August 26, 2024 and sell it today you would earn a total of 740.00 from holding Laudus Large Cap or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Laudus Large Cap
Performance |
| Timeline |
| John Hancock Disciplined |
| Laudus Large Cap |
John Hancock and Laudus Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Laudus Us
The main advantage of trading using opposite John Hancock and Laudus Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Laudus Us 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 Laudus Us will offset losses from the drop in Laudus Us' long position.| John Hancock vs. Barings Active Short | John Hancock vs. Versatile Bond Portfolio | John Hancock vs. Multisector Bond Sma | John Hancock vs. Rbc Bluebay Global |
| Laudus Us vs. Multi Manager High Yield | Laudus Us vs. Guggenheim High Yield | Laudus Us vs. Prudential High Yield | Laudus Us vs. Gmo High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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