Correlation Between John Hancock and Dreyfus/standish
Can any of the company-specific risk be diversified away by investing in both John Hancock and Dreyfus/standish 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 Dreyfus/standish into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Dreyfusstandish Global Fixed, you can compare the effects of market volatilities on John Hancock and Dreyfus/standish 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 Dreyfus/standish. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Dreyfus/standish.
Diversification Opportunities for John Hancock and Dreyfus/standish
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and Dreyfus/standish is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Dreyfusstandish Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusstandish 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 Disciplined are associated (or correlated) with Dreyfus/standish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusstandish Global has no effect on the direction of John Hancock i.e., John Hancock and Dreyfus/standish go up and down completely randomly.
Pair Corralation between John Hancock and Dreyfus/standish
Assuming the 90 days horizon John Hancock Disciplined is expected to under-perform the Dreyfus/standish. In addition to that, John Hancock is 2.84 times more volatile than Dreyfusstandish Global Fixed. It trades about -0.18 of its total potential returns per unit of risk. Dreyfusstandish Global Fixed is currently generating about 0.2 per unit of volatility. If you would invest 2,021 in Dreyfusstandish Global Fixed on November 27, 2024 and sell it today you would earn a total of 18.00 from holding Dreyfusstandish Global Fixed or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
John Hancock Disciplined vs. Dreyfusstandish Global Fixed
Performance |
| Timeline |
| John Hancock Disciplined |
| Dreyfusstandish Global |
John Hancock and Dreyfus/standish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Dreyfus/standish
The main advantage of trading using opposite John Hancock and Dreyfus/standish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Dreyfus/standish 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 Dreyfus/standish will offset losses from the drop in Dreyfus/standish's long position.| John Hancock vs. Maryland Short Term Tax Free | John Hancock vs. Siit Emerging Markets | John Hancock vs. Angel Oak Ultrashort | John Hancock vs. Legg Mason Western |
| Dreyfus/standish vs. Old Westbury Municipal | Dreyfus/standish vs. Doubleline Total Return | Dreyfus/standish vs. Ambrus Core Bond | Dreyfus/standish vs. Goldman Sachs Bond |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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