Correlation Between Nasdaq 100 and John Hancock

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

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

Diversification Opportunities for Nasdaq 100 and John Hancock

0.59

Correlation Coefficient

Nasdaq 100  John Hancock

Very weak diversification

The 3 months correlation between Nasdaq and John is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and John Hancock Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Emerging and Nasdaq 100 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 Nasdaq 100 2x Strategy 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 Emerging has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and John Hancock go up and down completely randomly.

Pair Corralation between Nasdaq 100 and John Hancock

Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to under-perform the John Hancock. In addition to that, Nasdaq 100 is 2.48 times more volatile than John Hancock Emerging. It trades about -0.11 of its total potential returns per unit of risk. John Hancock Emerging is currently generating about 0.02 per unit of volatility. 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

Nasdaq 100 2x Strategy  vs.  John Hancock Emerging

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.

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.

Pair Trading with Nasdaq 100 and John Hancock

The main advantage of trading using opposite Nasdaq 100 and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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 Nasdaq 100 2x Strategy and John Hancock Emerging 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.

Check out your portfolio center.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.