Correlation Between Delaware Value and John Hancock
Can any of the company-specific risk be diversified away by investing in both Delaware Value 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 Delaware Value and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Value Fund and John Hancock Disciplined, you can compare the effects of market volatilities on Delaware Value 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 Delaware Value with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Value and John Hancock.
Diversification Opportunities for Delaware Value and John Hancock
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Delaware and John is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value Fund and John Hancock Disciplined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Disciplined and Delaware Value 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 Delaware Value Fund 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 Disciplined has no effect on the direction of Delaware Value i.e., Delaware Value and John Hancock go up and down completely randomly.
Pair Corralation between Delaware Value and John Hancock
Assuming the 90 days horizon Delaware Value Fund is expected to under-perform the John Hancock. In addition to that, Delaware Value is 1.92 times more volatile than John Hancock Disciplined. It trades about -0.1 of its total potential returns per unit of risk. John Hancock Disciplined is currently generating about -0.07 per unit of volatility. If you would invest 2,559 in John Hancock Disciplined on December 3, 2024 and sell it today you would lose (224.00) from holding John Hancock Disciplined or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Value Fund vs. John Hancock Disciplined
Performance |
| Timeline |
| Delaware Value |
| John Hancock Disciplined |
Delaware Value and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Value and John Hancock
The main advantage of trading using opposite Delaware Value and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Value 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.| Delaware Value vs. Guidemark Large Cap | ||
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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