Correlation Between John Hancock and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both John Hancock and Clearbridge Value 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 Clearbridge Value 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 Clearbridge Value Trust, you can compare the effects of market volatilities on John Hancock and Clearbridge Value 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 Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Clearbridge Value.
Diversification Opportunities for John Hancock and Clearbridge Value
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Clearbridge is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Clearbridge Value Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Value Trust 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 Clearbridge Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Value Trust has no effect on the direction of John Hancock i.e., John Hancock and Clearbridge Value go up and down completely randomly.
Pair Corralation between John Hancock and Clearbridge Value
Assuming the 90 days horizon John Hancock is expected to generate 1.02 times less return on investment than Clearbridge Value. But when comparing it to its historical volatility, John Hancock Disciplined is 1.01 times less risky than Clearbridge Value. It trades about 0.1 of its potential returns per unit of risk. Clearbridge Value Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,827 in Clearbridge Value Trust on August 29, 2024 and sell it today you would earn a total of 1,505 from holding Clearbridge Value Trust or generate 11.73% 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. Clearbridge Value Trust
Performance |
| Timeline |
| John Hancock Disciplined |
| Clearbridge Value Trust |
John Hancock and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Clearbridge Value
The main advantage of trading using opposite John Hancock and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Clearbridge Value 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 Clearbridge Value will offset losses from the drop in Clearbridge Value's long position.| John Hancock vs. New World Fund | John Hancock vs. Bond Fund Of | John Hancock vs. Washington Mutual Investors | John Hancock vs. Europacific Growth Fund |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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