Correlation Between John Hancock and Great Elm
Can any of the company-specific risk be diversified away by investing in both John Hancock and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Investors and Great Elm Capital, you can compare the effects of market volatilities on John Hancock and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Great Elm.
Diversification Opportunities for John Hancock and Great Elm
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between John and Great is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investors and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Investors are associated (or correlated) with Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of John Hancock i.e., John Hancock and Great Elm go up and down completely randomly.
Pair Corralation between John Hancock and Great Elm
Considering the 90-day investment horizon John Hancock is expected to generate 1.52 times less return on investment than Great Elm. But when comparing it to its historical volatility, John Hancock Investors is 3.5 times less risky than Great Elm. It trades about 0.13 of its potential returns per unit of risk. Great Elm Capital is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Great Elm Capital on November 4, 2024 and sell it today you would earn a total of 174.00 from holding Great Elm Capital or generate 19.53% 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 Investors vs. Great Elm Capital
Performance |
| Timeline |
| John Hancock Investors |
| Great Elm Capital |
John Hancock and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Great Elm
The main advantage of trading using opposite John Hancock and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| John Hancock vs. DTF Tax Free | John Hancock vs. MFS Investment Grade | John Hancock vs. Eaton Vance National | John Hancock vs. Nuveen California Select |
| Great Elm vs. John Hancock Investors | Great Elm vs. MFS Charter Income | Great Elm vs. GCM Grosvenor | Great Elm vs. BlackRock ESG Capital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |