Correlation Between John Hancock and Templeton Constrained
Can any of the company-specific risk be diversified away by investing in both John Hancock and Templeton Constrained 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 Templeton Constrained into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Var and Templeton Strained Bond, you can compare the effects of market volatilities on John Hancock and Templeton Constrained 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 Templeton Constrained. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Templeton Constrained.
Diversification Opportunities for John Hancock and Templeton Constrained
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Templeton is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Var and Templeton Strained Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Strained Bond 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 Var are associated (or correlated) with Templeton Constrained. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Strained Bond has no effect on the direction of John Hancock i.e., John Hancock and Templeton Constrained go up and down completely randomly.
Pair Corralation between John Hancock and Templeton Constrained
Assuming the 90 days horizon John Hancock Var is expected to generate 13.46 times more return on investment than Templeton Constrained. However, John Hancock is 13.46 times more volatile than Templeton Strained Bond. It trades about 0.09 of its potential returns per unit of risk. Templeton Strained Bond is currently generating about 0.77 per unit of risk. If you would invest 2,128 in John Hancock Var on June 4, 2025 and sell it today you would earn a total of 105.00 from holding John Hancock Var or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Var vs. Templeton Strained Bond
Performance |
| Timeline |
| John Hancock Var |
| Templeton Strained Bond |
John Hancock and Templeton Constrained Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Templeton Constrained
The main advantage of trading using opposite John Hancock and Templeton Constrained positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Templeton Constrained 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 Templeton Constrained will offset losses from the drop in Templeton Constrained's long position.| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
| Templeton Constrained vs. Vanguard Total Stock | Templeton Constrained vs. Vanguard 500 Index | Templeton Constrained vs. Vanguard Total Stock | Templeton Constrained vs. Vanguard Total Stock |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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