Correlation Between Franklin Dynatech and John Hancock
Can any of the company-specific risk be diversified away by investing in both Franklin Dynatech 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 Franklin Dynatech and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Dynatech Fund and John Hancock Bond, you can compare the effects of market volatilities on Franklin Dynatech 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 Franklin Dynatech with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Dynatech and John Hancock.
Diversification Opportunities for Franklin Dynatech and John Hancock
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and John is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Dynatech Fund and John Hancock Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Bond and Franklin Dynatech 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 Franklin Dynatech Fund 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 Bond has no effect on the direction of Franklin Dynatech i.e., Franklin Dynatech and John Hancock go up and down completely randomly.
Pair Corralation between Franklin Dynatech and John Hancock
Assuming the 90 days horizon Franklin Dynatech Fund is expected to generate 3.98 times more return on investment than John Hancock. However, Franklin Dynatech is 3.98 times more volatile than John Hancock Bond. It trades about 0.07 of its potential returns per unit of risk. John Hancock Bond is currently generating about 0.09 per unit of risk. If you would invest 12,180 in Franklin Dynatech Fund on September 3, 2024 and sell it today you would earn a total of 1,790 from holding Franklin Dynatech Fund or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Dynatech Fund vs. John Hancock Bond
Performance |
| Timeline |
| Franklin Dynatech |
| John Hancock Bond |
Franklin Dynatech and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Dynatech and John Hancock
The main advantage of trading using opposite Franklin Dynatech and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Dynatech 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.| Franklin Dynatech vs. Nuveen High Income | Franklin Dynatech vs. Morningstar Aggressive Growth | Franklin Dynatech vs. T Rowe Price | Franklin Dynatech vs. Gmo High Yield |
| John Hancock vs. Fidelity Advisor Health | John Hancock vs. Blackrock Health Sciences | John Hancock vs. Highland Longshort Healthcare | John Hancock vs. Alger Health Sciences |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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