Correlation Between John Hancock and Franklin Real
Can any of the company-specific risk be diversified away by investing in both John Hancock and Franklin Real 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 Franklin Real 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 Franklin Real Estate, you can compare the effects of market volatilities on John Hancock and Franklin Real 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 Franklin Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Franklin Real.
Diversification Opportunities for John Hancock and Franklin Real
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Franklin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Municipal and Franklin Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Real Estate 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 Franklin Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Real Estate has no effect on the direction of John Hancock i.e., John Hancock and Franklin Real go up and down completely randomly.
Pair Corralation between John Hancock and Franklin Real
Assuming the 90 days horizon John Hancock Municipal is expected to generate 0.13 times more return on investment than Franklin Real. However, John Hancock Municipal is 7.57 times less risky than Franklin Real. It trades about 0.26 of its potential returns per unit of risk. Franklin Real Estate is currently generating about 0.0 per unit of risk. If you would invest 999.00 in John Hancock Municipal on June 5, 2025 and sell it today you would earn a total of 18.00 from holding John Hancock Municipal or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Municipal vs. Franklin Real Estate
Performance |
| Timeline |
| John Hancock Municipal |
| Franklin Real Estate |
John Hancock and Franklin Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Franklin Real
The main advantage of trading using opposite John Hancock and Franklin Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Franklin Real 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 Franklin Real will offset losses from the drop in Franklin Real's long position.| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Balanced | John Hancock vs. Multimanager Lifestyle Aggressive |
| Franklin Real vs. Pgim Conservative Retirement | Franklin Real vs. Victory Diversified Stock | Franklin Real vs. Tiaa Cref Lifestyle Conservative | Franklin Real vs. Putnam Diversified Income |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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