Correlation Between John Hancock and Eventide Core
Can any of the company-specific risk be diversified away by investing in both John Hancock and Eventide Core 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 Eventide Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Variable and Eventide Core Bond, you can compare the effects of market volatilities on John Hancock and Eventide Core 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 Eventide Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Eventide Core.
Diversification Opportunities for John Hancock and Eventide Core
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between John and Eventide is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Eventide Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Core Bond 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 Variable are associated (or correlated) with Eventide Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Core Bond has no effect on the direction of John Hancock i.e., John Hancock and Eventide Core go up and down completely randomly.
Pair Corralation between John Hancock and Eventide Core
Assuming the 90 days horizon John Hancock Variable is expected to generate 2.46 times more return on investment than Eventide Core. However, John Hancock is 2.46 times more volatile than Eventide Core Bond. It trades about 0.29 of its potential returns per unit of risk. Eventide Core Bond is currently generating about 0.15 per unit of risk. If you would invest 2,116 in John Hancock Variable on September 1, 2024 and sell it today you would earn a total of 110.00 from holding John Hancock Variable or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Eventide Core Bond
Performance |
| Timeline |
| John Hancock Variable |
| Eventide Core Bond |
John Hancock and Eventide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Eventide Core
The main advantage of trading using opposite John Hancock and Eventide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Eventide Core 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 Eventide Core will offset losses from the drop in Eventide Core's long position.| John Hancock vs. Pace Municipal Fixed | John Hancock vs. T Rowe Price | John Hancock vs. Old Westbury Municipal | John Hancock vs. T Rowe Price |
| Eventide Core vs. Lord Abbett Convertible | Eventide Core vs. The Gamco Global | Eventide Core vs. Calamos Dynamic Convertible | Eventide Core vs. Gabelli Convertible And |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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