Correlation Between John Hancock and Nasdaq 100

Can any of the company-specific risk be diversified away by investing in both John Hancock and Nasdaq 100 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 John Hancock and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between John Hancock Emerging and Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on John Hancock and Nasdaq 100 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 John Hancock with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nasdaq 100.

Diversification Opportunities for John Hancock and Nasdaq 100

0.59

Correlation Coefficient

John Hancock  Nasdaq 100

Very weak diversification

The 3 months correlation between John and Nasdaq is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Emerging and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x and John 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 John Hancock Emerging are associated (or correlated) with Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of John Hancock i.e., John Hancock and Nasdaq 100 go up and down completely randomly.

Pair Corralation between John Hancock and Nasdaq 100

Assuming the 90 days horizon John Hancock Emerging is expected to generate 0.4 times more return on investment than Nasdaq 100. However, John Hancock Emerging is 2.48 times less risky than Nasdaq 100. It trades about 0.02 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about -0.11 per unit of risk. If you would invest  960.00  in John Hancock Emerging on December 20, 2024 and sell it today you would earn a total of  8.00  from holding John Hancock Emerging or generate 0.83% return on investment over 90 days.

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

John Hancock Emerging  vs.  Nasdaq 100 2x Strategy

John Hancock Emerging

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Emerging are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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.

Nasdaq 100 2x

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nasdaq 100 2x Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with John Hancock and Nasdaq 100

The main advantage of trading using opposite John Hancock and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.

The idea behind John Hancock Emerging and Nasdaq 100 2x Strategy 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.