Correlation Between Lgm Risk and John Hancock
Can any of the company-specific risk be diversified away by investing in both Lgm Risk and John Hancock 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 Lgm Risk and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lgm Risk Managed and John Hancock Emerging, you can compare the effects of market volatilities on Lgm Risk and John Hancock 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 Lgm Risk with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lgm Risk and John Hancock.
Diversification Opportunities for Lgm Risk and John Hancock
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lgm and John is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lgm Risk Managed and John Hancock Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Emerging and Lgm Risk 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 Lgm Risk Managed are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Emerging has no effect on the direction of Lgm Risk i.e., Lgm Risk and John Hancock go up and down completely randomly.
Pair Corralation between Lgm Risk and John Hancock
Assuming the 90 days horizon Lgm Risk Managed is expected to generate 0.64 times more return on investment than John Hancock. However, Lgm Risk Managed is 1.57 times less risky than John Hancock. It trades about -0.23 of its potential returns per unit of risk. John Hancock Emerging is currently generating about -0.29 per unit of risk. If you would invest 1,151 in Lgm Risk Managed on October 11, 2024 and sell it today you would lose (21.00) from holding Lgm Risk Managed or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lgm Risk Managed vs. John Hancock Emerging
Performance |
| Timeline |
| Lgm Risk Managed |
| John Hancock Emerging |
Lgm Risk and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lgm Risk and John Hancock
The main advantage of trading using opposite Lgm Risk and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lgm Risk position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Lgm Risk vs. Transamerica Cleartrack Retirement | Lgm Risk vs. Qs Moderate Growth | Lgm Risk vs. College Retirement Equities | Lgm Risk vs. American Funds Retirement |
| John Hancock vs. Credit Suisse Multialternative | John Hancock vs. Lord Abbett Inflation | John Hancock vs. Guidepath Managed Futures | John Hancock vs. Fidelity Sai Inflationfocused |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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