Correlation Between John Hancock and Dividend Growth
Can any of the company-specific risk be diversified away by investing in both John Hancock and Dividend Growth 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 John Hancock and Dividend Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Hedged and Dividend Growth Split, you can compare the effects of market volatilities on John Hancock and Dividend Growth 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 John Hancock with a short position of Dividend Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Dividend Growth.
Diversification Opportunities for John Hancock and Dividend Growth
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Dividend is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Hedged and Dividend Growth Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend Growth Split and John Hancock 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 John Hancock Hedged are associated (or correlated) with Dividend Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend Growth Split has no effect on the direction of John Hancock i.e., John Hancock and Dividend Growth go up and down completely randomly.
Pair Corralation between John Hancock and Dividend Growth
If you would invest 1,093 in John Hancock Hedged on August 29, 2024 and sell it today you would earn a total of 7.00 from holding John Hancock Hedged or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
John Hancock Hedged vs. Dividend Growth Split
Performance |
| Timeline |
| John Hancock Hedged |
| Dividend Growth Split |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Dividend Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Dividend Growth
The main advantage of trading using opposite John Hancock and Dividend Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Dividend Growth 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 Dividend Growth will offset losses from the drop in Dividend Growth's long position.| John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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