Correlation Between John Hancock and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both John Hancock and Eaton Vance 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 John Hancock and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Preferred and Eaton Vance Tax, you can compare the effects of market volatilities on John Hancock and Eaton Vance 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 John Hancock with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Eaton Vance.
Diversification Opportunities for John Hancock and Eaton Vance
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Eaton is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Preferred and Eaton Vance Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and John Hancock 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 John Hancock Preferred are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Tax has no effect on the direction of John Hancock i.e., John Hancock and Eaton Vance go up and down completely randomly.
Pair Corralation between John Hancock and Eaton Vance
Considering the 90-day investment horizon John Hancock Preferred is expected to under-perform the Eaton Vance. But the etf apears to be less risky and, when comparing its historical volatility, John Hancock Preferred is 1.08 times less risky than Eaton Vance. The etf trades about -0.18 of its potential returns per unit of risk. The Eaton Vance Tax is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,887 in Eaton Vance Tax on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Eaton Vance Tax or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Preferred vs. Eaton Vance Tax
Performance |
| Timeline |
| John Hancock Preferred |
| Eaton Vance Tax |
John Hancock and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Eaton Vance
The main advantage of trading using opposite John Hancock and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Tax | John Hancock vs. John Hancock Premium | John Hancock vs. Cohen Steers Tax Advantaged |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. DTF Tax Free | Eaton Vance vs. HUMANA INC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |