Correlation Between John Hancock and Arbitrage Event
Can any of the company-specific risk be diversified away by investing in both John Hancock and Arbitrage Event 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 Arbitrage Event into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Funds and The Arbitrage Event Driven, you can compare the effects of market volatilities on John Hancock and Arbitrage Event 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 Arbitrage Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Arbitrage Event.
Diversification Opportunities for John Hancock and Arbitrage Event
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and Arbitrage is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and The Arbitrage Event Driven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Event 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 Funds are associated (or correlated) with Arbitrage Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Event has no effect on the direction of John Hancock i.e., John Hancock and Arbitrage Event go up and down completely randomly.
Pair Corralation between John Hancock and Arbitrage Event
Assuming the 90 days horizon John Hancock Funds is expected to generate 5.86 times more return on investment than Arbitrage Event. However, John Hancock is 5.86 times more volatile than The Arbitrage Event Driven. It trades about 0.23 of its potential returns per unit of risk. The Arbitrage Event Driven is currently generating about 0.44 per unit of risk. If you would invest 1,517 in John Hancock Funds on May 29, 2025 and sell it today you would earn a total of 135.00 from holding John Hancock Funds or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Funds vs. The Arbitrage Event Driven
Performance |
| Timeline |
| John Hancock Funds |
| Arbitrage Event |
John Hancock and Arbitrage Event Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Arbitrage Event
The main advantage of trading using opposite John Hancock and Arbitrage Event positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Arbitrage Event 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 Arbitrage Event will offset losses from the drop in Arbitrage Event's long position.| John Hancock vs. T Rowe Price | John Hancock vs. Balanced Fund Retail | John Hancock vs. Ips Strategic Capital | John Hancock vs. Ab Select Equity |
| Arbitrage Event vs. James Balanced Golden | Arbitrage Event vs. Fidelity Advisor Gold | Arbitrage Event vs. Sprott Gold Equity | Arbitrage Event vs. Goldman Sachs Clean |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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