Correlation Between Valued Advisers and John Hancock

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

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

Diversification Opportunities for Valued Advisers and John Hancock

0.06

Correlation Coefficient

Valued Advisers  John Hancock

Significant diversification

The 3 months correlation between Valued and John is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Valued Advisers 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 Valued Advisers 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 Valued Advisers 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 Valued Advisers i.e., Valued Advisers and John Hancock go up and down completely randomly.

Pair Corralation between Valued Advisers and John Hancock

Given the investment horizon of 90 days Valued Advisers is expected to generate 2116.6 times less return on investment than John Hancock. But when comparing it to its historical volatility, Valued Advisers Trust is 1058.49 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.25 of returns per unit of risk over similar time horizon. 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	7.31%
Values	Daily Returns

Valued Advisers Trust  vs.  John Hancock Exchange Traded

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.

John Hancock Exchange

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Exchange Traded are ranked lower than 19 (%) 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.

Pair Trading with Valued Advisers and John Hancock

The main advantage of trading using opposite Valued Advisers and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valued Advisers 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 Valued Advisers Trust and John Hancock Exchange Traded 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.