Correlation Between Clearbridge Value and John Hancock
Can any of the company-specific risk be diversified away by investing in both Clearbridge Value 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 Clearbridge Value and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Value Trust and John Hancock Investment, you can compare the effects of market volatilities on Clearbridge Value 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 Clearbridge Value with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Value and John Hancock.
Diversification Opportunities for Clearbridge Value and John Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Clearbridge and John is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Value Trust and John Hancock Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Investment and Clearbridge Value 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 Clearbridge Value Trust 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 Investment has no effect on the direction of Clearbridge Value i.e., Clearbridge Value and John Hancock go up and down completely randomly.
Pair Corralation between Clearbridge Value and John Hancock
Assuming the 90 days horizon Clearbridge Value is expected to generate 1.41 times less return on investment than John Hancock. In addition to that, Clearbridge Value is 1.01 times more volatile than John Hancock Investment. It trades about 0.06 of its total potential returns per unit of risk. John Hancock Investment is currently generating about 0.08 per unit of volatility. If you would invest 5,667 in John Hancock Investment on September 3, 2024 and sell it today you would earn a total of 2,585 from holding John Hancock Investment or generate 45.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Value Trust vs. John Hancock Investment
Performance |
| Timeline |
| Clearbridge Value Trust |
| John Hancock Investment |
Clearbridge Value and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Value and John Hancock
The main advantage of trading using opposite Clearbridge Value and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Value 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.| Clearbridge Value vs. Ishares Municipal Bond | Clearbridge Value vs. Vanguard California Long Term | Clearbridge Value vs. Victory High Income | Clearbridge Value vs. Federated Pennsylvania Municipal |
| John Hancock vs. Calamos Dynamic Convertible | John Hancock vs. Limited Term Tax | John Hancock vs. Touchstone Premium Yield | John Hancock vs. Versatile Bond Portfolio |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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