Correlation Between Doubleline Income and John Hancock
Can any of the company-specific risk be diversified away by investing in both Doubleline Income 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 Doubleline Income and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Income Solutions and John Hancock Preferred, you can compare the effects of market volatilities on Doubleline Income 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 Doubleline Income with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Income and John Hancock.
Diversification Opportunities for Doubleline Income and John Hancock
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Doubleline and John is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Income Solutions and John Hancock Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Preferred and Doubleline Income 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 Doubleline Income Solutions 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 Preferred has no effect on the direction of Doubleline Income i.e., Doubleline Income and John Hancock go up and down completely randomly.
Pair Corralation between Doubleline Income and John Hancock
Considering the 90-day investment horizon Doubleline Income is expected to generate 1.06 times less return on investment than John Hancock. But when comparing it to its historical volatility, Doubleline Income Solutions is 1.11 times less risky than John Hancock. It trades about 0.07 of its potential returns per unit of risk. John Hancock Preferred is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,320 in John Hancock Preferred on September 3, 2024 and sell it today you would earn a total of 445.00 from holding John Hancock Preferred or generate 33.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Income Solutions vs. John Hancock Preferred
Performance |
| Timeline |
| Doubleline Income |
| John Hancock Preferred |
Doubleline Income and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Income and John Hancock
The main advantage of trading using opposite Doubleline Income and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Income 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.| Doubleline Income vs. Highland Floating Rate | Doubleline Income vs. Pimco Dynamic Income | Doubleline Income vs. Doubleline Opportunistic Credit | Doubleline Income vs. Neuberger Berman Next |
| John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Preferred | John Hancock vs. John Hancock Premium | John Hancock vs. John Hancock Tax |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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