Correlation Between John Hancock and Elevation Series
Can any of the company-specific risk be diversified away by investing in both John Hancock and Elevation Series 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 Elevation Series 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 Elevation Series Trust, you can compare the effects of market volatilities on John Hancock and Elevation Series 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 Elevation Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Elevation Series.
Diversification Opportunities for John Hancock and Elevation Series
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Elevation is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and Elevation Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Series 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 Elevation Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Series Trust has no effect on the direction of John Hancock i.e., John Hancock and Elevation Series go up and down completely randomly.
Pair Corralation between John Hancock and Elevation Series
Given the investment horizon of 90 days John Hancock is expected to generate 1.29 times less return on investment than Elevation Series. In addition to that, John Hancock is 1.07 times more volatile than Elevation Series Trust. It trades about 0.06 of its total potential returns per unit of risk. Elevation Series Trust is currently generating about 0.08 per unit of volatility. If you would invest 2,758 in Elevation Series Trust on November 9, 2024 and sell it today you would earn a total of 1,111 from holding Elevation Series Trust or generate 40.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
John Hancock Multifactor vs. Elevation Series Trust
Performance |
| Timeline |
| John Hancock Multifactor |
| Elevation Series Trust |
John Hancock and Elevation Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Elevation Series
The main advantage of trading using opposite John Hancock and Elevation Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Elevation Series 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 Elevation Series will offset losses from the drop in Elevation Series' 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 |
| Elevation Series vs. Two Roads Shared | Elevation Series vs. VictoryShares International Value | Elevation Series vs. THOR Financial Technologies | Elevation Series vs. Motley Fool Global |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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