Correlation Between John Hancock and JPMorgan Fundamental

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

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

Diversification Opportunities for John Hancock and JPMorgan Fundamental

1.0

Correlation Coefficient

John Hancock  JPMorgan Fundamental

No risk reduction

The 3 months correlation between John and JPMorgan is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Multifactor and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data 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 Multifactor are associated (or correlated) with JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of John Hancock i.e., John Hancock and JPMorgan Fundamental go up and down completely randomly.

Pair Corralation between John Hancock and JPMorgan Fundamental

Given the investment horizon of 90 days John Hancock Multifactor is expected to generate 1.03 times more return on investment than JPMorgan Fundamental. However, John Hancock is 1.03 times more volatile than JPMorgan Fundamental Data. It trades about 0.15 of its potential returns per unit of risk. JPMorgan Fundamental Data is currently generating about 0.14 per unit of risk. If you would invest  5,659  in John Hancock Multifactor on May 6, 2025 and sell it today you would earn a total of  478.00  from holding John Hancock Multifactor or generate 8.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

John Hancock Multifactor  vs.  JPMorgan Fundamental Data

John Hancock Multifactor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Multifactor are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting primary indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in September 2025.

JPMorgan Fundamental Data

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Fundamental Data are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal fundamental indicators, JPMorgan Fundamental may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with John Hancock and JPMorgan Fundamental

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

The idea behind John Hancock Multifactor and JPMorgan Fundamental Data 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.