Correlation Between Small Cap and John Hancock

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Can any of the company-specific risk be diversified away by investing in both Small Cap 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 Small Cap and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Equity and John Hancock Trust, you can compare the effects of market volatilities on Small Cap 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 Small Cap with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Cap and John Hancock.

Diversification Opportunities for Small Cap and John Hancock

SmallJohnDiversified AwaySmallJohnDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Small and John is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Equity and John Hancock Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Trust and Small Cap 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 Small Cap Equity 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 Trust has no effect on the direction of Small Cap i.e., Small Cap and John Hancock go up and down completely randomly.

Pair Corralation between Small Cap and John Hancock

If you would invest  0.00  in John Hancock Trust on October 19, 2024 and sell it today you would earn a total of  0.00  from holding John Hancock Trust or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.67%
ValuesDaily Returns

Small Cap Equity  vs.  John Hancock Trust

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 0510
JavaScript chart by amCharts 3.21.15GSCYX JAGQX
       Timeline  
Small Cap Equity 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Small Cap Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Small Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1818.51919.52020.5
John Hancock Trust 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days John Hancock Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Small Cap and John Hancock Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.42-3.31-2.2-1.090.01.082.23.314.435.55 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15GSCYX JAGQX
       Returns  

Pair Trading with Small Cap and John Hancock

The main advantage of trading using opposite Small Cap and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Cap 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 Small Cap Equity and John Hancock Trust 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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