Correlation Between Innovator Etfs and John Hancock
Can any of the company-specific risk be diversified away by investing in both Innovator Etfs 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 Innovator Etfs and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator Etfs Trust and John Hancock Hedged, you can compare the effects of market volatilities on Innovator Etfs 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 Innovator Etfs with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Etfs and John Hancock.
Diversification Opportunities for Innovator Etfs and John Hancock
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innovator and John is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Etfs Trust and John Hancock Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Hedged and Innovator Etfs 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 Innovator Etfs Trust 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 Hedged has no effect on the direction of Innovator Etfs i.e., Innovator Etfs and John Hancock go up and down completely randomly.
Pair Corralation between Innovator Etfs and John Hancock
Given the investment horizon of 90 days Innovator Etfs is expected to generate 4.84 times less return on investment than John Hancock. But when comparing it to its historical volatility, Innovator Etfs Trust is 5.24 times less risky than John Hancock. It trades about 0.17 of its potential returns per unit of risk. John Hancock Hedged is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,032 in John Hancock Hedged on November 7, 2024 and sell it today you would earn a total of 18.00 from holding John Hancock Hedged or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovator Etfs Trust vs. John Hancock Hedged
Performance |
| Timeline |
| Innovator Etfs Trust |
| John Hancock Hedged |
Innovator Etfs and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator Etfs and John Hancock
The main advantage of trading using opposite Innovator Etfs and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Etfs 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.| Innovator Etfs vs. Innovator Premium Income | Innovator Etfs vs. Innovator Premium Income | Innovator Etfs vs. Innovator Premium Income |
| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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