Correlation Between John Hancock and Brandywineglobal

Can any of the company-specific risk be diversified away by investing in both John Hancock and Brandywineglobal 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 Brandywineglobal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between John Hancock Tax Advantaged and Brandywineglobal Globalome Opportunities, you can compare the effects of market volatilities on John Hancock and Brandywineglobal 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 Brandywineglobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Brandywineglobal.

Diversification Opportunities for John Hancock and Brandywineglobal

-0.63

Correlation Coefficient

John Hancock  Brandywineglobal

Excellent diversification

The 3 months correlation between John and Brandywineglobal is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Brandywineglobal Globalome Opp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywineglobal Glo 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 Tax Advantaged are associated (or correlated) with Brandywineglobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywineglobal Glo has no effect on the direction of John Hancock i.e., John Hancock and Brandywineglobal go up and down completely randomly.

Pair Corralation between John Hancock and Brandywineglobal

If you would invest  844.00  in Brandywineglobal Globalome Opportunities on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Brandywineglobal Globalome Opportunities or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

John Hancock Tax Advantaged  vs.  Brandywineglobal Globalome Opp

John Hancock Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Tax Advantaged has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Brandywineglobal Glo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brandywineglobal Globalome Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Brandywineglobal is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with John Hancock and Brandywineglobal

The main advantage of trading using opposite John Hancock and Brandywineglobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Brandywineglobal 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 Brandywineglobal will offset losses from the drop in Brandywineglobal's long position.

The idea behind John Hancock Tax Advantaged and Brandywineglobal Globalome Opportunities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.