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
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JRODX and Emerging is 0.97. 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 Ii is expected to generate 1.03 times more return on investment than Emerging Markets. However, J Hancock is 1.03 times more volatile than Emerging Markets Fund. It trades about 0.29 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.3 per unit of risk. If you would invest 1,575 in J Hancock Ii on April 30, 2025 and sell it today you would earn a total of 193.00 from holding J Hancock Ii or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| 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. Fidelity Advisor Gold | J Hancock vs. Gamco Global Gold | J Hancock vs. First Eagle Gold | J Hancock vs. Oppenheimer Gold Special |
| Emerging Markets vs. Real Estate Ultrasector | Emerging Markets vs. Rems Real Estate | Emerging Markets vs. Virtus Real Estate | Emerging Markets vs. Nuveen Real Estate |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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