Correlation Between IShares Core and John Hancock
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Dividend and John Hancock Exchange, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and John Hancock.
Diversification Opportunities for IShares Core and John Hancock
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and John is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Dividend and John Hancock Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and IShares Core 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 iShares Core Dividend 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 Exchange has no effect on the direction of IShares Core i.e., IShares Core and John Hancock go up and down completely randomly.
Pair Corralation between IShares Core and John Hancock
Given the investment horizon of 90 days IShares Core is expected to generate 1.27 times less return on investment than John Hancock. But when comparing it to its historical volatility, iShares Core Dividend is 1.2 times less risky than John Hancock. It trades about 0.08 of its potential returns per unit of risk. John Hancock Exchange is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,656 in John Hancock Exchange on August 26, 2024 and sell it today you would earn a total of 1,101 from holding John Hancock Exchange or generate 41.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core Dividend vs. John Hancock Exchange
Performance |
| Timeline |
| iShares Core Dividend |
| John Hancock Exchange |
IShares Core and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and John Hancock
The main advantage of trading using opposite IShares Core and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. BlackRock ETF Trust | IShares Core vs. Rbb Fund | IShares Core vs. Virtus ETF Trust | IShares Core vs. Amplify CWP Enhanced |
| John Hancock vs. BlackRock ETF Trust | John Hancock vs. Rbb Fund | John Hancock vs. Virtus ETF Trust | John Hancock vs. Amplify CWP Enhanced |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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