Correlation Between John Hancock and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both John Hancock and Elfun Diversified 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 Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock High and Elfun Diversified Fund, you can compare the effects of market volatilities on John Hancock and Elfun Diversified 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 Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Elfun Diversified.
Diversification Opportunities for John Hancock and Elfun Diversified
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Elfun is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock High and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified 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 High are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of John Hancock i.e., John Hancock and Elfun Diversified go up and down completely randomly.
Pair Corralation between John Hancock and Elfun Diversified
Assuming the 90 days horizon John Hancock is expected to generate 4.12 times less return on investment than Elfun Diversified. But when comparing it to its historical volatility, John Hancock High is 2.97 times less risky than Elfun Diversified. It trades about 0.07 of its potential returns per unit of risk. Elfun Diversified Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,289 in Elfun Diversified Fund on September 12, 2025 and sell it today you would earn a total of 70.00 from holding Elfun Diversified Fund or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock High vs. Elfun Diversified Fund
Performance |
| Timeline |
| John Hancock High |
| Elfun Diversified |
John Hancock and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Elfun Diversified
The main advantage of trading using opposite John Hancock and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Elfun Diversified 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 Elfun Diversified will offset losses from the drop in Elfun Diversified's long position.| John Hancock vs. Fidelity Large Cap | John Hancock vs. Dreyfus Large Cap | John Hancock vs. Neiman Large Cap | John Hancock vs. Dunham Large Cap |
| Elfun Diversified vs. Gamco Global Gold | Elfun Diversified vs. James Balanced Golden | Elfun Diversified vs. World Precious Minerals | Elfun Diversified vs. Oppenheimer Gold Special |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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