Correlation Between John Hancock and Calvert Income
Can any of the company-specific risk be diversified away by investing in both John Hancock and Calvert Income 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 Calvert Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Calvert Income Fund, you can compare the effects of market volatilities on John Hancock and Calvert Income 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 Calvert Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Calvert Income.
Diversification Opportunities for John Hancock and Calvert Income
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Calvert is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Calvert Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Income 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 Financial are associated (or correlated) with Calvert Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Income has no effect on the direction of John Hancock i.e., John Hancock and Calvert Income go up and down completely randomly.
Pair Corralation between John Hancock and Calvert Income
Considering the 90-day investment horizon John Hancock Financial is expected to generate 4.51 times more return on investment than Calvert Income. However, John Hancock is 4.51 times more volatile than Calvert Income Fund. It trades about 0.17 of its potential returns per unit of risk. Calvert Income Fund is currently generating about 0.1 per unit of risk. If you would invest 3,201 in John Hancock Financial on April 30, 2025 and sell it today you would earn a total of 391.00 from holding John Hancock Financial or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Calvert Income Fund
Performance |
| Timeline |
| John Hancock Financial |
| Calvert Income |
John Hancock and Calvert Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Calvert Income
The main advantage of trading using opposite John Hancock and Calvert Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Calvert Income 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 Calvert Income will offset losses from the drop in Calvert Income's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Calvert Income vs. Ab Select Longshort | Calvert Income vs. Calamos Longshort Fund | Calvert Income vs. Oakhurst Short Duration | Calvert Income vs. Dreyfus Short Intermediate |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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