Correlation Between John Hancock and Dow 2x
Can any of the company-specific risk be diversified away by investing in both John Hancock and Dow 2x 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 Dow 2x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Emerging and Dow 2x Strategy, you can compare the effects of market volatilities on John Hancock and Dow 2x 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 Dow 2x. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Dow 2x.
Diversification Opportunities for John Hancock and Dow 2x
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between John and Dow is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Emerging and Dow 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow 2x Strategy 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 Emerging are associated (or correlated) with Dow 2x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow 2x Strategy has no effect on the direction of John Hancock i.e., John Hancock and Dow 2x go up and down completely randomly.
Pair Corralation between John Hancock and Dow 2x
Assuming the 90 days horizon John Hancock Emerging is expected to generate 0.37 times more return on investment than Dow 2x. However, John Hancock Emerging is 2.71 times less risky than Dow 2x. It trades about -0.35 of its potential returns per unit of risk. Dow 2x Strategy is currently generating about -0.3 per unit of risk. If you would invest 992.00 in John Hancock Emerging on October 10, 2024 and sell it today you would lose (46.00) from holding John Hancock Emerging or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Emerging vs. Dow 2x Strategy
Performance |
| Timeline |
| John Hancock Emerging |
| Dow 2x Strategy |
John Hancock and Dow 2x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Dow 2x
The main advantage of trading using opposite John Hancock and Dow 2x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Dow 2x 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 Dow 2x will offset losses from the drop in Dow 2x's long position.| John Hancock vs. Artisan High Income | John Hancock vs. Ab High Income | John Hancock vs. Lgm Risk Managed | John Hancock vs. Dunham High Yield |
| Dow 2x vs. Sp 500 2x | Dow 2x vs. Inverse Dow 2x | Dow 2x vs. Nasdaq 100 2x Strategy | Dow 2x vs. Russell 2000 2x |
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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