Correlation Between Europac Gold and John Hancock
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and John Hancock Income, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and John Hancock.
Diversification Opportunities for Europac Gold and John Hancock
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Europac and John is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Europac Gold 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 Europac Gold Fund 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 Income has no effect on the direction of Europac Gold i.e., Europac Gold and John Hancock go up and down completely randomly.
Pair Corralation between Europac Gold and John Hancock
Assuming the 90 days horizon Europac Gold Fund is expected to generate 5.79 times more return on investment than John Hancock. However, Europac Gold is 5.79 times more volatile than John Hancock Income. It trades about 0.03 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.06 per unit of risk. If you would invest 928.00 in Europac Gold Fund on September 3, 2024 and sell it today you would earn a total of 185.00 from holding Europac Gold Fund or generate 19.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. John Hancock Income
Performance |
| Timeline |
| Europac Gold |
| John Hancock Income |
Europac Gold and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and John Hancock
The main advantage of trading using opposite Europac Gold and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.| Europac Gold vs. First Eagle Gold | Europac Gold vs. First Eagle Gold | Europac Gold vs. Oppenheimer Gold Spec | Europac Gold vs. Oppenheimer Gold Special |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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