Correlation Between J Hancock and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both J Hancock and Emerging Markets 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 J Hancock and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Hancock Ii and Emerging Markets Fund, you can compare the effects of market volatilities on J Hancock and Emerging Markets 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 J Hancock with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Emerging Markets.
Diversification Opportunities for J Hancock and Emerging Markets
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JRODX and Emerging is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets and J 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 J Hancock Ii are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of J Hancock i.e., J Hancock and Emerging Markets go up and down completely randomly.
Pair Corralation between J Hancock and Emerging Markets
Assuming the 90 days horizon J Hancock is expected to generate 1.24 times less return on investment than Emerging Markets. But when comparing it to its historical volatility, J Hancock Ii is 1.23 times less risky than Emerging Markets. It trades about 0.23 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Emerging Markets Fund on May 29, 2025 and sell it today you would earn a total of 100.00 from holding Emerging Markets Fund or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Hancock Ii vs. Emerging Markets Fund
Performance |
| Timeline |
| J Hancock Ii |
| Emerging Markets |
J Hancock and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Emerging Markets
The main advantage of trading using opposite J Hancock and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| J Hancock vs. Growth Allocation Fund | J Hancock vs. Praxis Genesis Growth | J Hancock vs. Multimanager Lifestyle Growth | J Hancock vs. Lifestyle Ii Growth |
| Emerging Markets vs. Western Assets Emerging | Emerging Markets vs. Rbc Bluebay Emerging | Emerging Markets vs. Pace International Emerging | Emerging Markets vs. Doubleline Emerging Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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