Correlation Between Cb Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Cb Large 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 Cb Large and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cb Large Cap and John Hancock Strategic, you can compare the effects of market volatilities on Cb Large 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 Cb Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cb Large and John Hancock.
Diversification Opportunities for Cb Large and John Hancock
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CBLSX and John is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Cb Large Cap and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Cb Large 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 Cb Large Cap 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 Strategic has no effect on the direction of Cb Large i.e., Cb Large and John Hancock go up and down completely randomly.
Pair Corralation between Cb Large and John Hancock
Assuming the 90 days horizon Cb Large is expected to generate 2.32 times less return on investment than John Hancock. But when comparing it to its historical volatility, Cb Large Cap is 1.34 times less risky than John Hancock. It trades about 0.23 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 2,747 in John Hancock Strategic on April 16, 2025 and sell it today you would earn a total of 144.00 from holding John Hancock Strategic or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cb Large Cap vs. John Hancock Strategic
Performance |
| Timeline |
| Cb Large Cap |
| John Hancock Strategic |
Cb Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cb Large and John Hancock
The main advantage of trading using opposite Cb Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cb Large 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.| Cb Large vs. Invesco Disciplined Equity | Cb Large vs. Cb Large Cap | Cb Large vs. Federated Mdt Large | Cb Large vs. Janus Forty Fund |
| John Hancock vs. Allianzgi Diversified Income | John Hancock vs. Jpmorgan Diversified Fund | John Hancock vs. Timothy Plan Conservative | John Hancock vs. Oppenheimer International Diversified |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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