Correlation Between Dreyfus Technology and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dreyfus Technology 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 Technology 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 Technology Growth and John Hancock Variable, you can compare the effects of market volatilities on Dreyfus Technology 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 Technology with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Technology and John Hancock.
Diversification Opportunities for Dreyfus Technology and John Hancock
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dreyfus and John is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Technology Growth and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Dreyfus Technology 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 Technology Growth 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 Variable has no effect on the direction of Dreyfus Technology i.e., Dreyfus Technology and John Hancock go up and down completely randomly.
Pair Corralation between Dreyfus Technology and John Hancock
Assuming the 90 days horizon Dreyfus Technology Growth is expected to generate 1.27 times more return on investment than John Hancock. However, Dreyfus Technology is 1.27 times more volatile than John Hancock Variable. It trades about 0.1 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.06 per unit of risk. If you would invest 4,319 in Dreyfus Technology Growth on September 12, 2024 and sell it today you would earn a total of 2,162 from holding Dreyfus Technology Growth or generate 50.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Technology Growth vs. John Hancock Variable
Performance |
| Timeline |
| Dreyfus Technology Growth |
| John Hancock Variable |
Dreyfus Technology and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Technology and John Hancock
The main advantage of trading using opposite Dreyfus Technology and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Technology 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 Technology vs. Multimedia Portfolio Multimedia | Dreyfus Technology vs. T Rowe Price | Dreyfus Technology vs. Balanced Fund Investor | Dreyfus Technology vs. T Rowe Price |
| John Hancock vs. Pender Real Estate | John Hancock vs. Nuveen Real Estate | John Hancock vs. Fidelity Real Estate | John Hancock vs. Simt Real Estate |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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