Correlation Between John Hancock and Valued Advisers

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

By analyzing existing cross correlation between John Hancock Exchange Traded and Valued Advisers Trust, you can compare the effects of market volatilities on John Hancock and Valued Advisers 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 Valued Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Valued Advisers.

Diversification Opportunities for John Hancock and Valued Advisers

0.04

Correlation Coefficient

John Hancock  Valued Advisers

Significant diversification

The 3 months correlation between John and Valued is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Exchange Traded and Valued Advisers Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valued Advisers Trust 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 Exchange Traded are associated (or correlated) with Valued Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valued Advisers Trust has no effect on the direction of John Hancock i.e., John Hancock and Valued Advisers go up and down completely randomly.

Pair Corralation between John Hancock and Valued Advisers

Given the investment horizon of 90 days John Hancock Exchange Traded is expected to generate 1090.9 times more return on investment than Valued Advisers. However, John Hancock is 1090.9 times more volatile than Valued Advisers Trust. It trades about 0.26 of its potential returns per unit of risk. Valued Advisers Trust is currently generating about 0.13 per unit of risk. If you would invest  0.00  in John Hancock Exchange Traded on October 11, 2024 and sell it today you would earn a total of  2,462  from holding John Hancock Exchange Traded or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	6.88%
Values	Daily Returns

John Hancock Exchange Traded  vs.  Valued Advisers Trust

John Hancock Exchange

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Exchange Traded are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile fundamental indicators, John Hancock reported solid returns over the last few months and may actually be approaching a breakup point.

Valued Advisers Trust

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Valued Advisers Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Valued Advisers is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with John Hancock and Valued Advisers

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

The idea behind John Hancock Exchange Traded and Valued Advisers 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.