Correlation Between John Hancock and EA Series
Can any of the company-specific risk be diversified away by investing in both John Hancock and EA 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 EA 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 EA Series Trust, you can compare the effects of market volatilities on John Hancock and EA 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and EA Series.
Diversification Opportunities for John Hancock and EA Series
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between John and STXM is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of John Hancock i.e., John Hancock and EA Series go up and down completely randomly.
Pair Corralation between John Hancock and EA Series
Given the investment horizon of 90 days John Hancock is expected to generate 1.01 times less return on investment than EA Series. But when comparing it to its historical volatility, John Hancock Multifactor is 1.14 times less risky than EA Series. It trades about 0.14 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,408 in EA Series Trust on September 1, 2024 and sell it today you would earn a total of 422.00 from holding EA Series Trust or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
John Hancock Multifactor vs. EA Series Trust
Performance |
| Timeline |
| John Hancock Multifactor |
| EA Series Trust |
John Hancock and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and EA Series
The main advantage of trading using opposite John Hancock and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, EA 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 EA Series will offset losses from the drop in EA 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 |
| EA Series vs. iShares Small Cap | EA Series vs. Invesco ESG NASDAQ | EA Series vs. Invesco ESG NASDAQ | EA Series vs. BlackRock Carbon Transition |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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