Correlation Between John Hancock and Calvert Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Calvert Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Municipal and Calvert Global Energy, you can compare the effects of market volatilities on John Hancock and Calvert Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Calvert Global.
Diversification Opportunities for John Hancock and Calvert Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Municipal and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Municipal are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of John Hancock i.e., John Hancock and Calvert Global go up and down completely randomly.
Pair Corralation between John Hancock and Calvert Global
Assuming the 90 days horizon John Hancock is expected to generate 7.1 times less return on investment than Calvert Global. But when comparing it to its historical volatility, John Hancock Municipal is 7.65 times less risky than Calvert Global. It trades about 0.28 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,133 in Calvert Global Energy on June 1, 2025 and sell it today you would earn a total of 169.00 from holding Calvert Global Energy or generate 14.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Municipal vs. Calvert Global Energy
Performance |
| Timeline |
| John Hancock Municipal |
| Calvert Global Energy |
John Hancock and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Calvert Global
The main advantage of trading using opposite John Hancock and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Calvert Global 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 Global will offset losses from the drop in Calvert Global's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
| Calvert Global vs. Dreyfus Natural Resources | Calvert Global vs. Pimco Energy Tactical | Calvert Global vs. Vanguard Energy Index | Calvert Global vs. Calvert Global Energy |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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