Correlation Between Praxis Genesis and John Hancock
Can any of the company-specific risk be diversified away by investing in both Praxis Genesis and John Hancock 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 Praxis Genesis and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Praxis Genesis Growth and John Hancock Variable, you can compare the effects of market volatilities on Praxis Genesis and John Hancock 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 Praxis Genesis with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Genesis and John Hancock.
Diversification Opportunities for Praxis Genesis and John Hancock
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Praxis and John is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Genesis Growth and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Praxis Genesis 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 Praxis Genesis Growth are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Variable has no effect on the direction of Praxis Genesis i.e., Praxis Genesis and John Hancock go up and down completely randomly.
Pair Corralation between Praxis Genesis and John Hancock
Assuming the 90 days horizon Praxis Genesis Growth is expected to generate 0.56 times more return on investment than John Hancock. However, Praxis Genesis Growth is 1.8 times less risky than John Hancock. It trades about 0.22 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.1 per unit of risk. If you would invest 1,959 in Praxis Genesis Growth on May 31, 2025 and sell it today you would earn a total of 138.00 from holding Praxis Genesis Growth or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Genesis Growth vs. John Hancock Variable
Performance |
| Timeline |
| Praxis Genesis Growth |
| John Hancock Variable |
Praxis Genesis and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Genesis and John Hancock
The main advantage of trading using opposite Praxis Genesis and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Genesis position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Praxis Genesis vs. Praxis Growth Index | Praxis Genesis vs. Praxis Small Cap | Praxis Genesis vs. Praxis Small Cap | Praxis Genesis vs. Praxis International Index |
| John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard 500 Index | John Hancock vs. Vanguard Total Stock | John Hancock vs. Vanguard Total Stock |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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