Correlation Between Dreyfus Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dreyfus Global 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 Dreyfus Global and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Global Dynamic and John Hancock Government, you can compare the effects of market volatilities on Dreyfus Global 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 Dreyfus Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Global and John Hancock.
Diversification Opportunities for Dreyfus Global and John Hancock
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and John is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Global Dynamic and John Hancock Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Government and Dreyfus Global 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 Dreyfus Global Dynamic 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 Government has no effect on the direction of Dreyfus Global i.e., Dreyfus Global and John Hancock go up and down completely randomly.
Pair Corralation between Dreyfus Global and John Hancock
Assuming the 90 days horizon Dreyfus Global Dynamic is expected to generate 0.35 times more return on investment than John Hancock. However, Dreyfus Global Dynamic is 2.84 times less risky than John Hancock. It trades about 0.31 of its potential returns per unit of risk. John Hancock Government is currently generating about 0.09 per unit of risk. If you would invest 1,093 in Dreyfus Global Dynamic on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Dreyfus Global Dynamic or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Dreyfus Global Dynamic vs. John Hancock Government
Performance |
| Timeline |
| Dreyfus Global Dynamic |
| John Hancock Government |
Dreyfus Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Global and John Hancock
The main advantage of trading using opposite Dreyfus Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Global 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.| Dreyfus Global vs. Federated Pennsylvania Municipal | Dreyfus Global vs. T Rowe Price | Dreyfus Global vs. Bbh Intermediate Municipal | Dreyfus Global vs. Bbh Intermediate Municipal |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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