Correlation Between ProShares UltraShort and John Hancock
Can any of the company-specific risk be diversified away by investing in both ProShares UltraShort 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 ProShares UltraShort and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares UltraShort 20 and John Hancock Exchange Traded, you can compare the effects of market volatilities on ProShares UltraShort 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 ProShares UltraShort with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares UltraShort and John Hancock.
Diversification Opportunities for ProShares UltraShort and John Hancock
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and John is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ProShares UltraShort 20 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 ProShares UltraShort 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 ProShares UltraShort 20 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 ProShares UltraShort i.e., ProShares UltraShort and John Hancock go up and down completely randomly.
Pair Corralation between ProShares UltraShort and John Hancock
Considering the 90-day investment horizon ProShares UltraShort 20 is expected to under-perform the John Hancock. In addition to that, ProShares UltraShort is 6.69 times more volatile than John Hancock Exchange Traded. It trades about -0.03 of its total potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.06 per unit of volatility. If you would invest 2,645 in John Hancock Exchange Traded on August 29, 2024 and sell it today you would earn a total of 12.00 from holding John Hancock Exchange Traded or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares UltraShort 20 vs. John Hancock Exchange Traded
Performance |
| Timeline |
| ProShares UltraShort |
| John Hancock Exchange |
ProShares UltraShort and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares UltraShort and John Hancock
The main advantage of trading using opposite ProShares UltraShort and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares UltraShort 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.| ProShares UltraShort vs. ProShares UltraShort 7 10 | ProShares UltraShort vs. ProShares UltraShort SP500 | ProShares UltraShort vs. iShares 20 Year | ProShares UltraShort vs. Direxion Daily 20 |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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