Correlation Between John Hancock and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both John Hancock and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Variable and Eaton Vance Worldwide, you can compare the effects of market volatilities on John Hancock and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Eaton Vance.
Diversification Opportunities for John Hancock and Eaton Vance
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Eaton is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Eaton Vance Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Worldwide 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 Variable are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Worldwide has no effect on the direction of John Hancock i.e., John Hancock and Eaton Vance go up and down completely randomly.
Pair Corralation between John Hancock and Eaton Vance
Assuming the 90 days horizon John Hancock Variable is expected to under-perform the Eaton Vance. In addition to that, John Hancock is 1.08 times more volatile than Eaton Vance Worldwide. It trades about 0.0 of its total potential returns per unit of risk. Eaton Vance Worldwide is currently generating about 0.02 per unit of volatility. If you would invest 1,404 in Eaton Vance Worldwide on May 1, 2025 and sell it today you would earn a total of 11.00 from holding Eaton Vance Worldwide or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Variable vs. Eaton Vance Worldwide
Performance |
| Timeline |
| John Hancock Variable |
| Eaton Vance Worldwide |
John Hancock and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Eaton Vance
The main advantage of trading using opposite John Hancock and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| John Hancock vs. Siit Large Cap | John Hancock vs. Barings Global Floating | John Hancock vs. Qs Moderate Growth | John Hancock vs. Old Westbury Large |
| Eaton Vance vs. Gmo Emerging Markets | Eaton Vance vs. Franklin Emerging Market | Eaton Vance vs. Nasdaq 100 2x Strategy | Eaton Vance vs. Pace International Emerging |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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