Correlation Between Lord Abbett and John Hancock
Can any of the company-specific risk be diversified away by investing in both Lord Abbett and John Hancock 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 Lord Abbett and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Intermediate and John Hancock Municipal, you can compare the effects of market volatilities on Lord Abbett and John Hancock 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 Lord Abbett with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and John Hancock.
Diversification Opportunities for Lord Abbett and John Hancock
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lord and John is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Intermediate and John Hancock Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Municipal and Lord Abbett 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 Lord Abbett Intermediate are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Municipal has no effect on the direction of Lord Abbett i.e., Lord Abbett and John Hancock go up and down completely randomly.
Pair Corralation between Lord Abbett and John Hancock
Assuming the 90 days horizon Lord Abbett is expected to generate 11.59 times less return on investment than John Hancock. In addition to that, Lord Abbett is 1.1 times more volatile than John Hancock Municipal. It trades about 0.01 of its total potential returns per unit of risk. John Hancock Municipal is currently generating about 0.19 per unit of volatility. If you would invest 995.00 in John Hancock Municipal on May 1, 2025 and sell it today you would earn a total of 12.00 from holding John Hancock Municipal or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Abbett Intermediate vs. John Hancock Municipal
Performance |
| Timeline |
| Lord Abbett Intermediate |
| John Hancock Municipal |
Lord Abbett and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and John Hancock
The main advantage of trading using opposite Lord Abbett and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Lord Abbett vs. Qs Large Cap | Lord Abbett vs. Vest Large Cap | Lord Abbett vs. Prudential Qma Large Cap | Lord Abbett vs. Nuveen Large Cap |
| John Hancock vs. Blackrock Pa Muni | John Hancock vs. Lord Abbett Intermediate | John Hancock vs. American High Income Municipal | John Hancock vs. Morningstar Municipal Bond |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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