Correlation Between Jhancock Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Jhancock Global 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 Jhancock Global and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Global Equity and Eaton Vance Multi Asset, you can compare the effects of market volatilities on Jhancock Global 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 Jhancock Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Global and Eaton Vance.
Diversification Opportunities for Jhancock Global and Eaton Vance
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Eaton is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Global Equity and Eaton Vance Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Jhancock Global 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 Jhancock Global Equity 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 Multi has no effect on the direction of Jhancock Global i.e., Jhancock Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Jhancock Global and Eaton Vance
Assuming the 90 days horizon Jhancock Global Equity is expected to generate 3.46 times more return on investment than Eaton Vance. However, Jhancock Global is 3.46 times more volatile than Eaton Vance Multi Asset. It trades about 0.09 of its potential returns per unit of risk. Eaton Vance Multi Asset is currently generating about 0.21 per unit of risk. If you would invest 1,129 in Jhancock Global Equity on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Jhancock Global Equity or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Global Equity vs. Eaton Vance Multi Asset
Performance |
| Timeline |
| Jhancock Global Equity |
| Eaton Vance Multi |
Jhancock Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Global and Eaton Vance
The main advantage of trading using opposite Jhancock Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Global 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.| Jhancock Global vs. John Hancock Financial | Jhancock Global vs. Blackrock Financial Institutions | Jhancock Global vs. Angel Oak Financial | Jhancock Global vs. Icon Financial Fund |
| Eaton Vance vs. Franklin Mutual Global | Eaton Vance vs. Jhancock Global Equity | Eaton Vance vs. Artisan Global Unconstrained | Eaton Vance vs. Kinetics Global Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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