Correlation Between KraneShares CSI and John Hancock

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

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

Diversification Opportunities for KraneShares CSI and John Hancock

0.74

Correlation Coefficient

KraneShares CSI  John Hancock

Poor diversification

The 3 months correlation between KraneShares and John is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding KraneShares CSI China and John Hancock Multifactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Multifactor and KraneShares CSI 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 KraneShares CSI China 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 Multifactor has no effect on the direction of KraneShares CSI i.e., KraneShares CSI and John Hancock go up and down completely randomly.

Pair Corralation between KraneShares CSI and John Hancock

Given the investment horizon of 90 days KraneShares CSI is expected to generate 2.14 times less return on investment than John Hancock. In addition to that, KraneShares CSI is 1.53 times more volatile than John Hancock Multifactor. It trades about 0.03 of its total potential returns per unit of risk. John Hancock Multifactor is currently generating about 0.11 per unit of volatility. If you would invest  3,654  in John Hancock Multifactor on May 5, 2025 and sell it today you would earn a total of  254.00  from holding John Hancock Multifactor or generate 6.95% return on investment over 90 days.

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

KraneShares CSI China  vs.  John Hancock Multifactor

KraneShares CSI China

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KraneShares CSI China are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, KraneShares CSI is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

John Hancock Multifactor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in John Hancock Multifactor are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, John Hancock may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with KraneShares CSI and John Hancock

The main advantage of trading using opposite KraneShares CSI and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KraneShares CSI 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 KraneShares CSI China and John Hancock Multifactor 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.