Correlation Between John Hancock and Exchange Listed
Can any of the company-specific risk be diversified away by investing in both John Hancock and Exchange Listed 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 Exchange Listed 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 Exchange Listed Funds, you can compare the effects of market volatilities on John Hancock and Exchange Listed 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 Exchange Listed. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Exchange Listed.
Diversification Opportunities for John Hancock and Exchange Listed
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Exchange is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and Exchange Listed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Listed Funds 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 Exchange Listed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Listed Funds has no effect on the direction of John Hancock i.e., John Hancock and Exchange Listed go up and down completely randomly.
Pair Corralation between John Hancock and Exchange Listed
Given the investment horizon of 90 days John Hancock Multifactor is expected to generate 1.38 times more return on investment than Exchange Listed. However, John Hancock is 1.38 times more volatile than Exchange Listed Funds. It trades about 0.3 of its potential returns per unit of risk. Exchange Listed Funds is currently generating about 0.31 per unit of risk. If you would invest 6,040 in John Hancock Multifactor on August 30, 2024 and sell it today you would earn a total of 419.00 from holding John Hancock Multifactor or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Multifactor vs. Exchange Listed Funds
Performance |
| Timeline |
| John Hancock Multifactor |
| Exchange Listed Funds |
John Hancock and Exchange Listed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Exchange Listed
The main advantage of trading using opposite John Hancock and Exchange Listed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Exchange Listed 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 Exchange Listed will offset losses from the drop in Exchange Listed's long position.| John Hancock vs. Vanguard Mid Cap Index | John Hancock vs. Vanguard Extended Market | John Hancock vs. iShares Core SP | John Hancock vs. iShares Russell Mid Cap |
| Exchange Listed vs. ETC 6 Meridian | Exchange Listed vs. 6 Meridian Mega | Exchange Listed vs. Tidal ETF Trust | Exchange Listed vs. 6 Meridian Low |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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