Correlation Between Dreyfus Government and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dreyfus Government 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 Government 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 Government Cash and John Hancock Disciplined, you can compare the effects of market volatilities on Dreyfus Government 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 Government with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Government and John Hancock.
Diversification Opportunities for Dreyfus Government and John Hancock
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dreyfus and JOHN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Government Cash 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 Dreyfus Government 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 Government Cash 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 Dreyfus Government i.e., Dreyfus Government and John Hancock go up and down completely randomly.
Pair Corralation between Dreyfus Government and John Hancock
If you would invest 2,588 in John Hancock Disciplined on September 2, 2024 and sell it today you would earn a total of 160.00 from holding John Hancock Disciplined or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dreyfus Government Cash vs. John Hancock Disciplined
Performance |
| Timeline |
| Dreyfus Government Cash |
| John Hancock Disciplined |
Dreyfus Government and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Government and John Hancock
The main advantage of trading using opposite Dreyfus Government and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Government 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 Government vs. Balanced Fund Investor | Dreyfus Government vs. Aam Select Income | Dreyfus Government vs. Fabxx | Dreyfus Government vs. Falcon Focus Scv |
| John Hancock vs. Us Vector Equity | John Hancock vs. Balanced Fund Retail | John Hancock vs. Small Cap Equity | John Hancock vs. Calamos Global Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |