Correlation Between John Hancock and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both John Hancock and Doubleline Core 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 Doubleline Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Doubleline Core Fixed, you can compare the effects of market volatilities on John Hancock and Doubleline Core 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 Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Doubleline Core.
Diversification Opportunities for John Hancock and Doubleline Core
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Doubleline is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed 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 Financial are associated (or correlated) with Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Core Fixed has no effect on the direction of John Hancock i.e., John Hancock and Doubleline Core go up and down completely randomly.
Pair Corralation between John Hancock and Doubleline Core
Considering the 90-day investment horizon John Hancock Financial is expected to generate 4.98 times more return on investment than Doubleline Core. However, John Hancock is 4.98 times more volatile than Doubleline Core Fixed. It trades about 0.03 of its potential returns per unit of risk. Doubleline Core Fixed is currently generating about 0.03 per unit of risk. If you would invest 3,655 in John Hancock Financial on November 6, 2024 and sell it today you would earn a total of 77.00 from holding John Hancock Financial or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Doubleline Core Fixed
Performance |
| Timeline |
| John Hancock Financial |
| Doubleline Core Fixed |
John Hancock and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Doubleline Core
The main advantage of trading using opposite John Hancock and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Doubleline Core 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 Doubleline Core will offset losses from the drop in Doubleline Core's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Doubleline Core vs. Stringer Growth Fund | Doubleline Core vs. L Abbett Growth | Doubleline Core vs. Tfa Alphagen Growth | Doubleline Core vs. Vanguard Growth And |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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