Correlation Between Calvert Large and John Hancock

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

By analyzing existing cross correlation between Calvert Large Cap and John Hancock Strategic, you can compare the effects of market volatilities on Calvert Large 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 Calvert Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Large and John Hancock.

Diversification Opportunities for Calvert Large and John Hancock

0.54

Correlation Coefficient

Calvert Large  John Hancock

Very weak diversification

The 3 months correlation between Calvert and John is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Large Cap and John Hancock Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Strategic and Calvert Large 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 Calvert Large Cap 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 Strategic has no effect on the direction of Calvert Large i.e., Calvert Large and John Hancock go up and down completely randomly.

Pair Corralation between Calvert Large and John Hancock

Assuming the 90 days horizon Calvert Large Cap is expected to generate 0.05 times more return on investment than John Hancock. However, Calvert Large Cap is 18.22 times less risky than John Hancock. It trades about 0.31 of its potential returns per unit of risk. John Hancock Strategic is currently generating about 0.0 per unit of risk. If you would invest  970.00  in Calvert Large Cap on September 19, 2025 and sell it today you would earn a total of  11.00  from holding Calvert Large Cap or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Calvert Large Cap  vs.  John Hancock Strategic

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Calvert Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Strategic

Risk-Adjusted Performance

Weakest

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

Pair Trading with Calvert Large and John Hancock

The main advantage of trading using opposite Calvert Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Large 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.

The idea behind Calvert Large Cap and John Hancock Strategic 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.