Correlation Between John Hancock and Eagle Point
Can any of the company-specific risk be diversified away by investing in both John Hancock and Eagle Point 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 Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Income and Eagle Point Income, you can compare the effects of market volatilities on John Hancock and Eagle Point 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 Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Eagle Point.
Diversification Opportunities for John Hancock and Eagle Point
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Eagle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Eagle Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income 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 Income are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of John Hancock i.e., John Hancock and Eagle Point go up and down completely randomly.
Pair Corralation between John Hancock and Eagle Point
Considering the 90-day investment horizon John Hancock Income is expected to generate 1.63 times more return on investment than Eagle Point. However, John Hancock is 1.63 times more volatile than Eagle Point Income. It trades about 0.04 of its potential returns per unit of risk. Eagle Point Income is currently generating about 0.06 per unit of risk. If you would invest 1,006 in John Hancock Income on August 30, 2024 and sell it today you would earn a total of 147.00 from holding John Hancock Income or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Eagle Point Income
Performance |
| Timeline |
| John Hancock Income |
| Eagle Point Income |
John Hancock and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Eagle Point
The main advantage of trading using opposite John Hancock and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |