Correlation Between DTF Tax and John Hancock
Can any of the company-specific risk be diversified away by investing in both DTF Tax 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 DTF Tax and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DTF Tax Free and John Hancock Income, you can compare the effects of market volatilities on DTF Tax 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 DTF Tax with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of DTF Tax and John Hancock.
Diversification Opportunities for DTF Tax and John Hancock
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between DTF and John is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding DTF Tax Free and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and DTF Tax 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 DTF Tax Free 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 Income has no effect on the direction of DTF Tax i.e., DTF Tax and John Hancock go up and down completely randomly.
Pair Corralation between DTF Tax and John Hancock
Considering the 90-day investment horizon DTF Tax is expected to generate 1.34 times less return on investment than John Hancock. In addition to that, DTF Tax is 1.01 times more volatile than John Hancock Income. It trades about 0.03 of its total potential returns per unit of risk. John Hancock Income is currently generating about 0.04 per unit of volatility. If you would invest 1,022 in John Hancock Income on August 27, 2024 and sell it today you would earn a total of 125.00 from holding John Hancock Income or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DTF Tax Free vs. John Hancock Income
Performance |
| Timeline |
| DTF Tax Free |
| John Hancock Income |
DTF Tax and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DTF Tax and John Hancock
The main advantage of trading using opposite DTF Tax and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DTF Tax 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.| DTF Tax vs. PowerUp Acquisition Corp | DTF Tax vs. Aurora Innovation | DTF Tax vs. HUMANA INC | DTF Tax vs. Aquagold International |
| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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