Correlation Between Ep Emerging and John Hancock
Can any of the company-specific risk be diversified away by investing in both Ep Emerging 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 Ep Emerging and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and John Hancock Bond, you can compare the effects of market volatilities on Ep Emerging 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 Ep Emerging with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and John Hancock.
Diversification Opportunities for Ep Emerging and John Hancock
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EPASX and John is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Ep Emerging 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 Ep Emerging Markets 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 Bond has no effect on the direction of Ep Emerging i.e., Ep Emerging and John Hancock go up and down completely randomly.
Pair Corralation between Ep Emerging and John Hancock
Assuming the 90 days horizon Ep Emerging is expected to generate 1.11 times less return on investment than John Hancock. In addition to that, Ep Emerging is 1.83 times more volatile than John Hancock Bond. It trades about 0.02 of its total potential returns per unit of risk. John Hancock Bond is currently generating about 0.05 per unit of volatility. If you would invest 1,244 in John Hancock Bond on November 30, 2024 and sell it today you would earn a total of 119.00 from holding John Hancock Bond or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ep Emerging Markets vs. John Hancock Bond
Performance |
| Timeline |
| Ep Emerging Markets |
| John Hancock Bond |
Ep Emerging and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and John Hancock
The main advantage of trading using opposite Ep Emerging and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging 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.| Ep Emerging vs. Hartford Moderate Allocation | Ep Emerging vs. Wealthbuilder Moderate Balanced | Ep Emerging vs. College Retirement Equities | Ep Emerging vs. Tiaa Cref Lifestyle Moderate |
| John Hancock vs. Forum Real Estate | John Hancock vs. Vy Clarion Real | John Hancock vs. Real Estate Ultrasector | John Hancock vs. Amg Managers Centersquare |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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