Correlation Between John Hancock and ClearBridge Dividend
Can any of the company-specific risk be diversified away by investing in both John Hancock and ClearBridge Dividend 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 ClearBridge Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Preferred and ClearBridge Dividend Strategy, you can compare the effects of market volatilities on John Hancock and ClearBridge Dividend 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 ClearBridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and ClearBridge Dividend.
Diversification Opportunities for John Hancock and ClearBridge Dividend
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and ClearBridge is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Preferred and ClearBridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearBridge Dividend 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 Preferred are associated (or correlated) with ClearBridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearBridge Dividend has no effect on the direction of John Hancock i.e., John Hancock and ClearBridge Dividend go up and down completely randomly.
Pair Corralation between John Hancock and ClearBridge Dividend
Given the investment horizon of 90 days John Hancock is expected to generate 3.28 times less return on investment than ClearBridge Dividend. But when comparing it to its historical volatility, John Hancock Preferred is 3.25 times less risky than ClearBridge Dividend. It trades about 0.13 of its potential returns per unit of risk. ClearBridge Dividend Strategy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,273 in ClearBridge Dividend Strategy on October 10, 2025 and sell it today you would earn a total of 159.00 from holding ClearBridge Dividend Strategy or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Preferred vs. ClearBridge Dividend Strategy
Performance |
| Timeline |
| John Hancock Preferred |
| ClearBridge Dividend |
John Hancock and ClearBridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and ClearBridge Dividend
The main advantage of trading using opposite John Hancock and ClearBridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, ClearBridge Dividend 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 ClearBridge Dividend will offset losses from the drop in ClearBridge Dividend's long position.| John Hancock vs. iShares Genomics Immunology | John Hancock vs. Franklin FTSE Europe | John Hancock vs. KraneShares Trust | John Hancock vs. Alpha Architect International |
| ClearBridge Dividend vs. Absolute Core Strategy | ClearBridge Dividend vs. The Advisors Inner | ClearBridge Dividend vs. First Trust Dorsey | ClearBridge Dividend vs. Elevation Series Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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