Correlation Between Spinnaker ETF and John Hancock
Can any of the company-specific risk be diversified away by investing in both Spinnaker ETF 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 Spinnaker ETF and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnaker ETF Series and John Hancock Preferred, you can compare the effects of market volatilities on Spinnaker ETF 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 Spinnaker ETF with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnaker ETF and John Hancock.
Diversification Opportunities for Spinnaker ETF and John Hancock
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnaker and John is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and John Hancock Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Preferred and Spinnaker ETF 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 Spinnaker ETF Series 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 Preferred has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and John Hancock go up and down completely randomly.
Pair Corralation between Spinnaker ETF and John Hancock
Given the investment horizon of 90 days Spinnaker ETF Series is expected to generate 0.29 times more return on investment than John Hancock. However, Spinnaker ETF Series is 3.49 times less risky than John Hancock. It trades about 0.04 of its potential returns per unit of risk. John Hancock Preferred is currently generating about -0.06 per unit of risk. If you would invest 1,021 in Spinnaker ETF Series on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Spinnaker ETF Series or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Spinnaker ETF Series vs. John Hancock Preferred
Performance |
| Timeline |
| Spinnaker ETF Series |
| John Hancock Preferred |
Spinnaker ETF and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnaker ETF and John Hancock
The main advantage of trading using opposite Spinnaker ETF and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF 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.| Spinnaker ETF vs. Schwab International Equity | Spinnaker ETF vs. Schwab Emerging Markets | Spinnaker ETF vs. Schwab Short Term Treasury | Spinnaker ETF vs. Schwab TIPS ETF |
| John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Premium | John Hancock vs. Flaherty Crumrine Preferred | John Hancock vs. John Hancock Tax |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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