Correlation Between Eaton Vance and John Hancock
Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and John Hancock Income, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and John Hancock.
Diversification Opportunities for Eaton Vance and John Hancock
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and John is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior 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 Eaton Vance 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 Eaton Vance Senior 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 Eaton Vance i.e., Eaton Vance and John Hancock go up and down completely randomly.
Pair Corralation between Eaton Vance and John Hancock
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.96 times more return on investment than John Hancock. However, Eaton Vance Senior is 1.05 times less risky than John Hancock. It trades about 0.2 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.08 per unit of risk. If you would invest 617.00 in Eaton Vance Senior on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Eaton Vance Senior or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. John Hancock Income
Performance |
| Timeline |
| Eaton Vance Senior |
| John Hancock Income |
Eaton Vance and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and John Hancock
The main advantage of trading using opposite Eaton Vance and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |