Correlation Between GraniteShares ETF and John Hancock

Can any of the company-specific risk be diversified away by investing in both GraniteShares 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 GraniteShares 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 GraniteShares ETF Trust and John Hancock Preferred, you can compare the effects of market volatilities on GraniteShares 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 GraniteShares ETF with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and John Hancock.

Diversification Opportunities for GraniteShares ETF and John Hancock

-0.07

Correlation Coefficient

GraniteShares ETF  John Hancock

Good diversification

The 3 months correlation between GraniteShares and John is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and John Hancock Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Preferred and GraniteShares 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 GraniteShares 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 Preferred has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and John Hancock go up and down completely randomly.

Pair Corralation between GraniteShares ETF and John Hancock

Given the investment horizon of 90 days GraniteShares ETF Trust is expected to under-perform the John Hancock. In addition to that, GraniteShares ETF is 10.16 times more volatile than John Hancock Preferred. It trades about -0.12 of its total potential returns per unit of risk. John Hancock Preferred is currently generating about -0.01 per unit of volatility. If you would invest  1,727  in John Hancock Preferred on November 29, 2024 and sell it today you would lose (10.00) from holding John Hancock Preferred or give up 0.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GraniteShares ETF Trust  vs.  John Hancock Preferred

GraniteShares ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days GraniteShares ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

John Hancock Preferred

Risk-Adjusted Performance

Very Weak

Over the last 90 days John Hancock Preferred has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with GraniteShares ETF and John Hancock

The main advantage of trading using opposite GraniteShares ETF and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 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.

The idea behind GraniteShares ETF Trust and John Hancock Preferred pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.