Correlation Between Dimensional Core and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dimensional Core 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 Dimensional Core and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional Core Equity and John Hancock Exchange Traded, you can compare the effects of market volatilities on Dimensional Core 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 Dimensional Core with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional Core and John Hancock.
Diversification Opportunities for Dimensional Core and John Hancock
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dimensional and John is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional Core Equity 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 Dimensional Core 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 Dimensional Core Equity 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 Dimensional Core i.e., Dimensional Core and John Hancock go up and down completely randomly.
Pair Corralation between Dimensional Core and John Hancock
Given the investment horizon of 90 days Dimensional Core Equity is expected to generate 1.14 times more return on investment than John Hancock. However, Dimensional Core is 1.14 times more volatile than John Hancock Exchange Traded. It trades about 0.22 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about -0.08 per unit of risk. If you would invest 3,446 in Dimensional Core Equity on August 26, 2024 and sell it today you would earn a total of 160.00 from holding Dimensional Core Equity or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional Core Equity vs. John Hancock Exchange Traded
Performance |
| Timeline |
| Dimensional Core Equity |
| John Hancock Exchange |
Dimensional Core and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional Core and John Hancock
The main advantage of trading using opposite Dimensional Core and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional Core 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.| Dimensional Core vs. Dimensional Targeted Value | Dimensional Core vs. Dimensional World ex | Dimensional Core vs. Dimensional Small Cap | Dimensional Core vs. Dimensional Core Equity |
| John Hancock vs. Franklin Templeton ETF | John Hancock vs. Altrius Global Dividend | John Hancock vs. Invesco Exchange Traded | John Hancock vs. Franklin International Core |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |