Correlation Between IShares Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both IShares Global and John Hancock 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 IShares Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Utilities and John Hancock Exchange Traded, you can compare the effects of market volatilities on IShares Global and John Hancock 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 IShares Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and John Hancock.
Diversification Opportunities for IShares Global and John Hancock
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and John is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Utilities and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and IShares Global 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 iShares Global Utilities are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Exchange has no effect on the direction of IShares Global i.e., IShares Global and John Hancock go up and down completely randomly.
Pair Corralation between IShares Global and John Hancock
Considering the 90-day investment horizon iShares Global Utilities is expected to generate 3.35 times more return on investment than John Hancock. However, IShares Global is 3.35 times more volatile than John Hancock Exchange Traded. It trades about 0.05 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.16 per unit of risk. If you would invest 5,732 in iShares Global Utilities on August 29, 2024 and sell it today you would earn a total of 1,266 from holding iShares Global Utilities or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.44% |
| Values | Daily Returns |
iShares Global Utilities vs. John Hancock Exchange Traded
Performance |
| Timeline |
| iShares Global Utilities |
| John Hancock Exchange |
IShares Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and John Hancock
The main advantage of trading using opposite IShares Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| IShares Global vs. iShares Global Consumer | IShares Global vs. iShares Global Industrials | IShares Global vs. iShares Global Consumer | IShares Global vs. iShares Global Materials |
| John Hancock vs. SSGA Active Trust | John Hancock vs. SPDR Nuveen Municipal | John Hancock vs. iShares Short Maturity | John Hancock vs. First Trust Flexible |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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