Correlation Between John Hancock and Touchstone Dynamic
Can any of the company-specific risk be diversified away by investing in both John Hancock and Touchstone Dynamic 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 Touchstone Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Government and Touchstone Dynamic Global, you can compare the effects of market volatilities on John Hancock and Touchstone Dynamic 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 Touchstone Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Touchstone Dynamic.
Diversification Opportunities for John Hancock and Touchstone Dynamic
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Touchstone is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Touchstone Dynamic Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Dynamic Global 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 Government are associated (or correlated) with Touchstone Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Dynamic Global has no effect on the direction of John Hancock i.e., John Hancock and Touchstone Dynamic go up and down completely randomly.
Pair Corralation between John Hancock and Touchstone Dynamic
If you would invest 780.00 in John Hancock Government on September 12, 2024 and sell it today you would earn a total of 6.00 from holding John Hancock Government or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
John Hancock Government vs. Touchstone Dynamic Global
Performance |
| Timeline |
| John Hancock Government |
| Touchstone Dynamic Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
John Hancock and Touchstone Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Touchstone Dynamic
The main advantage of trading using opposite John Hancock and Touchstone Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Touchstone Dynamic 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 Touchstone Dynamic will offset losses from the drop in Touchstone Dynamic's long position.| John Hancock vs. Vanguard Gnma Fund | John Hancock vs. Vanguard Intermediate Term Government | John Hancock vs. Us Government Securities | John Hancock vs. Us Government Securities |
| Touchstone Dynamic vs. Jhancock Disciplined Value | Touchstone Dynamic vs. Washington Mutual Investors | Touchstone Dynamic vs. T Rowe Price | Touchstone Dynamic vs. Upright Assets Allocation |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |