Correlation Between John Hancock and Eaton Vance

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

By analyzing existing cross correlation between John Hancock Investment and Eaton Vance Government, you can compare the effects of market volatilities on John Hancock and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Eaton Vance.

Diversification Opportunities for John Hancock and Eaton Vance

0.0

Correlation Coefficient

John Hancock  Eaton Vance

Pay attention - limited upside

The 3 months correlation between John and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investment and Eaton Vance Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Government 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 Investment are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Government has no effect on the direction of John Hancock i.e., John Hancock and Eaton Vance go up and down completely randomly.

Pair Corralation between John Hancock and Eaton Vance

If you would invest  7,580  in John Hancock Investment on September 2, 2024 and sell it today you would earn a total of  672.00  from holding John Hancock Investment or generate 8.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

John Hancock Investment  vs.  Eaton Vance Government

John Hancock Investment

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Investment are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Eaton Vance Government

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Government has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with John Hancock and Eaton Vance

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

The idea behind John Hancock Investment and Eaton Vance Government 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.