Correlation Between PGIM ETF and John Hancock
Can any of the company-specific risk be diversified away by investing in both PGIM ETF 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 PGIM ETF and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM ETF Trust and John Hancock Exchange Traded, you can compare the effects of market volatilities on PGIM ETF 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 PGIM ETF with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM ETF and John Hancock.
Diversification Opportunities for PGIM ETF and John Hancock
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PGIM and John is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding PGIM ETF Trust and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and PGIM ETF 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 PGIM ETF Trust 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 Exchange has no effect on the direction of PGIM ETF i.e., PGIM ETF and John Hancock go up and down completely randomly.
Pair Corralation between PGIM ETF and John Hancock
Considering the 90-day investment horizon PGIM ETF Trust is expected to under-perform the John Hancock. But the etf apears to be less risky and, when comparing its historical volatility, PGIM ETF Trust is 1.28 times less risky than John Hancock. The etf trades about -0.02 of its potential returns per unit of risk. The John Hancock Exchange Traded is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,161 in John Hancock Exchange Traded on September 11, 2025 and sell it today you would earn a total of 5.00 from holding John Hancock Exchange Traded or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGIM ETF Trust vs. John Hancock Exchange Traded
Performance |
| Timeline |
| PGIM ETF Trust |
| John Hancock Exchange |
PGIM ETF and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM ETF and John Hancock
The main advantage of trading using opposite PGIM ETF and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM ETF 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.| PGIM ETF vs. BondBloxx ETF Trust | PGIM ETF vs. WisdomTree Mortgage Plus | PGIM ETF vs. Brookstone Intermediate Bond | PGIM ETF vs. Cambria Value and |
| John Hancock vs. Bondbloxx ETF Trust | John Hancock vs. Brookstone Ultra Short Bond | John Hancock vs. WisdomTree Emerging Markets | John Hancock vs. WisdomTree Yield Enhanced |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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