Correlation Between Tidal Trust and John Hancock
Can any of the company-specific risk be diversified away by investing in both Tidal Trust 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 Tidal Trust and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and John Hancock Exchange Traded, you can compare the effects of market volatilities on Tidal Trust 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 Tidal Trust with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and John Hancock.
Diversification Opportunities for Tidal Trust and John Hancock
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tidal and John is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and Tidal Trust 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 Tidal Trust II 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 Tidal Trust i.e., Tidal Trust and John Hancock go up and down completely randomly.
Pair Corralation between Tidal Trust and John Hancock
Given the investment horizon of 90 days Tidal Trust II is expected to generate 120.45 times more return on investment than John Hancock. However, Tidal Trust is 120.45 times more volatile than John Hancock Exchange Traded. It trades about 0.1 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about -0.01 per unit of risk. If you would invest 0.00 in Tidal Trust II on September 1, 2024 and sell it today you would earn a total of 1,393 from holding Tidal Trust II or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.02% |
| Values | Daily Returns |
Tidal Trust II vs. John Hancock Exchange Traded
Performance |
| Timeline |
| Tidal Trust II |
| John Hancock Exchange |
Tidal Trust and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and John Hancock
The main advantage of trading using opposite Tidal Trust and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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.| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Tidal Trust II |
| John Hancock vs. Franklin Templeton ETF | John Hancock vs. Altrius Global Dividend | John Hancock vs. Invesco Exchange Traded | John Hancock vs. Franklin International Core |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |