Correlation Between Dodge Global and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dodge 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 Dodge 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 Dodge Global Stock and John Hancock Global, you can compare the effects of market volatilities on Dodge 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 Dodge Global with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Global and John Hancock.
Diversification Opportunities for Dodge Global and John Hancock
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dodge and John is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dodge Global Stock and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Dodge 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 Dodge Global Stock 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 Global has no effect on the direction of Dodge Global i.e., Dodge Global and John Hancock go up and down completely randomly.
Pair Corralation between Dodge Global and John Hancock
Assuming the 90 days horizon Dodge Global is expected to generate 1.32 times less return on investment than John Hancock. In addition to that, Dodge Global is 1.15 times more volatile than John Hancock Global. It trades about 0.07 of its total potential returns per unit of risk. John Hancock Global is currently generating about 0.11 per unit of volatility. If you would invest 994.00 in John Hancock Global on September 12, 2024 and sell it today you would earn a total of 246.00 from holding John Hancock Global or generate 24.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge Global Stock vs. John Hancock Global
Performance |
| Timeline |
| Dodge Global Stock |
| John Hancock Global |
Dodge Global and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Global and John Hancock
The main advantage of trading using opposite Dodge Global and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge 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.| Dodge Global vs. Qs International Equity | Dodge Global vs. Us Strategic Equity | Dodge Global vs. Ms Global Fixed | Dodge Global vs. Us Vector Equity |
| John Hancock vs. Dodge Global Stock | John Hancock vs. Franklin Mutual Global | John Hancock vs. T Rowe Price | John Hancock vs. HUMANA INC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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