| JHEM Etf | | | USD 26.77 0.05 0.19% |
The current 90-days correlation between John Hancock Multifactor and Xtrackers MSCI Emerging is 0.94 (i.e., Almost no diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as John Hancock moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if John Hancock Multifactor moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
John Hancock Correlation With Market
Modest diversification
The correlation between John Hancock Multifactor and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in John Hancock Multifactor. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in income.