Correlation Between John Hancock and Lord Abbett
Can any of the company-specific risk be diversified away by investing in both John Hancock and Lord Abbett 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 Lord Abbett 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 Lord Abbett Intermediate, you can compare the effects of market volatilities on John Hancock and Lord Abbett 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 Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Lord Abbett.
Diversification Opportunities for John Hancock and Lord Abbett
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Lord is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Municipal and Lord Abbett Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Intermediate 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 Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Intermediate has no effect on the direction of John Hancock i.e., John Hancock and Lord Abbett go up and down completely randomly.
Pair Corralation between John Hancock and Lord Abbett
Assuming the 90 days horizon John Hancock Municipal is expected to generate 0.93 times more return on investment than Lord Abbett. However, John Hancock Municipal is 1.07 times less risky than Lord Abbett. It trades about 0.26 of its potential returns per unit of risk. Lord Abbett Intermediate is currently generating about 0.16 per unit of risk. If you would invest 999.00 in John Hancock Municipal on June 7, 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Municipal vs. Lord Abbett Intermediate
Performance |
| Timeline |
| John Hancock Municipal |
| Lord Abbett Intermediate |
John Hancock and Lord Abbett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Lord Abbett
The main advantage of trading using opposite John Hancock and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Lord Abbett 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 Lord Abbett will offset losses from the drop in Lord Abbett'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 |
| Lord Abbett vs. Invesco Global Health | Lord Abbett vs. Eventide Healthcare Life | Lord Abbett vs. Vanguard Health Care | Lord Abbett vs. Alphacentric Lifesci Healthcare |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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