Correlation Between John Hancock and Tema ETF
Can any of the company-specific risk be diversified away by investing in both John Hancock and Tema ETF 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 Tema ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Multifactor and Tema ETF Trust, you can compare the effects of market volatilities on John Hancock and Tema ETF 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 Tema ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Tema ETF.
Diversification Opportunities for John Hancock and Tema ETF
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Tema is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and Tema ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema ETF Trust 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 Multifactor are associated (or correlated) with Tema ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema ETF Trust has no effect on the direction of John Hancock i.e., John Hancock and Tema ETF go up and down completely randomly.
Pair Corralation between John Hancock and Tema ETF
Given the investment horizon of 90 days John Hancock Multifactor is expected to under-perform the Tema ETF. But the etf apears to be less risky and, when comparing its historical volatility, John Hancock Multifactor is 1.97 times less risky than Tema ETF. The etf trades about -0.03 of its potential returns per unit of risk. The Tema ETF Trust is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,888 in Tema ETF Trust on November 18, 2024 and sell it today you would lose (20.00) from holding Tema ETF Trust or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Multifactor vs. Tema ETF Trust
Performance |
| Timeline |
| John Hancock Multifactor |
| Tema ETF Trust |
John Hancock and Tema ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Tema ETF
The main advantage of trading using opposite John Hancock and Tema ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Tema ETF 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 Tema ETF will offset losses from the drop in Tema ETF's long position.| John Hancock vs. John Hancock Multifactor | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. JPMorgan Diversified Return | John Hancock vs. JPMorgan Diversified Return |
| Tema ETF vs. iShares Dividend and | Tema ETF vs. Martin Currie Sustainable | Tema ETF vs. VictoryShares THB Mid | Tema ETF vs. Mast Global Battery |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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