Correlation Between Dunham Corporate/govern and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dunham Corporate/govern 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 Dunham Corporate/govern and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Porategovernment Bond and John Hancock Ii, you can compare the effects of market volatilities on Dunham Corporate/govern 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 Dunham Corporate/govern with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Corporate/govern and John Hancock.
Diversification Opportunities for Dunham Corporate/govern and John Hancock
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and John is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Porategovernment Bond and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Dunham Corporate/govern 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 Dunham Porategovernment Bond 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 Ii has no effect on the direction of Dunham Corporate/govern i.e., Dunham Corporate/govern and John Hancock go up and down completely randomly.
Pair Corralation between Dunham Corporate/govern and John Hancock
Assuming the 90 days horizon Dunham Porategovernment Bond is expected to generate 0.19 times more return on investment than John Hancock. However, Dunham Porategovernment Bond is 5.24 times less risky than John Hancock. It trades about -0.03 of its potential returns per unit of risk. John Hancock Ii is currently generating about -0.04 per unit of risk. If you would invest 1,262 in Dunham Porategovernment Bond on November 2, 2024 and sell it today you would lose (10.00) from holding Dunham Porategovernment Bond or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Porategovernment Bond vs. John Hancock Ii
Performance |
| Timeline |
| Dunham Porategovernment |
| John Hancock Ii |
Dunham Corporate/govern and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Corporate/govern and John Hancock
The main advantage of trading using opposite Dunham Corporate/govern and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Corporate/govern 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.| Dunham Corporate/govern vs. Ab Global Bond | Dunham Corporate/govern vs. Vanguard E Bond | Dunham Corporate/govern vs. Doubleline Total Return | Dunham Corporate/govern vs. Franklin Government Money |
| John Hancock vs. Old Westbury Fixed | John Hancock vs. Gmo High Yield | John Hancock vs. Multisector Bond Sma | John Hancock vs. Dreyfusstandish Global Fixed |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |