Correlation Between John Hancock and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both John Hancock and Franklin Mutual 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 Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Funds and Franklin Mutual Global, you can compare the effects of market volatilities on John Hancock and Franklin Mutual 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 Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Franklin Mutual.
Diversification Opportunities for John Hancock and Franklin Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global 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 Funds are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of John Hancock i.e., John Hancock and Franklin Mutual go up and down completely randomly.
Pair Corralation between John Hancock and Franklin Mutual
If you would invest (100.00) in Franklin Mutual Global on September 9, 2024 and sell it today you would earn a total of 100.00 from holding Franklin Mutual Global or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Funds vs. Franklin Mutual Global
Performance |
Timeline |
John Hancock Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Franklin Mutual Global |
John Hancock and Franklin Mutual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Franklin Mutual
The main advantage of trading using opposite John Hancock and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.John Hancock vs. Blrc Sgy Mnp | John Hancock vs. Dws Government Money | John Hancock vs. California Bond Fund | John Hancock vs. Transamerica Intermediate Muni |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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