Correlation Between Clifford Capital and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Clifford Capital 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 Clifford Capital and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clifford Capital Partners and John Hancock Income, you can compare the effects of market volatilities on Clifford Capital 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 Clifford Capital with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clifford Capital and John Hancock.

Diversification Opportunities for Clifford Capital and John Hancock

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Clifford and John is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Clifford Capital Partners and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Clifford Capital 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 Clifford Capital Partners 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 Income has no effect on the direction of Clifford Capital i.e., Clifford Capital and John Hancock go up and down completely randomly.

Pair Corralation between Clifford Capital and John Hancock

Assuming the 90 days horizon Clifford Capital is expected to generate 1.14 times less return on investment than John Hancock. In addition to that, Clifford Capital is 1.62 times more volatile than John Hancock Income. It trades about 0.07 of its total potential returns per unit of risk. John Hancock Income is currently generating about 0.13 per unit of volatility. If you would invest  1,136  in John Hancock Income on September 1, 2025 and sell it today you would earn a total of  51.00  from holding John Hancock Income or generate 4.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Clifford Capital Partners  vs.  John Hancock Income

 Performance 
       Timeline  
Clifford Capital Partners 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Clifford Capital Partners are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Clifford Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
John Hancock Income 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Income are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical indicators, John Hancock is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Clifford Capital and John Hancock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Clifford Capital and John Hancock

The main advantage of trading using opposite Clifford Capital and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clifford Capital 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.
The idea behind Clifford Capital Partners and John Hancock Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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