Correlation Between Xtrackers California and John Hancock
Can any of the company-specific risk be diversified away by investing in both Xtrackers California 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 Xtrackers California and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers California Municipal and John Hancock Exchange Traded, you can compare the effects of market volatilities on Xtrackers California 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 Xtrackers California with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers California and John Hancock.
Diversification Opportunities for Xtrackers California and John Hancock
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xtrackers and John is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers California Municipal and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and Xtrackers California 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 Xtrackers California Municipal 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 Exchange has no effect on the direction of Xtrackers California i.e., Xtrackers California and John Hancock go up and down completely randomly.
Pair Corralation between Xtrackers California and John Hancock
Allowing for the 90-day total investment horizon Xtrackers California Municipal is expected to generate 1.0 times more return on investment than John Hancock. However, Xtrackers California is 1.0 times more volatile than John Hancock Exchange Traded. It trades about 0.15 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.14 per unit of risk. If you would invest 2,434 in Xtrackers California Municipal on August 29, 2024 and sell it today you would earn a total of 108.00 from holding Xtrackers California Municipal or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers California Municipal vs. John Hancock Exchange Traded
Performance |
| Timeline |
| Xtrackers California |
| John Hancock Exchange |
Xtrackers California and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers California and John Hancock
The main advantage of trading using opposite Xtrackers California and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers California 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.| Xtrackers California vs. IQ MacKay Municipal | Xtrackers California vs. IQ MacKay Municipal | Xtrackers California vs. ALPS Intermediate Municipal | Xtrackers California vs. MYMF |
| John Hancock vs. SSGA Active Trust | John Hancock vs. SPDR Nuveen Municipal | John Hancock vs. iShares Short Maturity | John Hancock vs. First Trust Flexible |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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