Correlation Between Xtrackers Short and John Hancock
Can any of the company-specific risk be diversified away by investing in both Xtrackers Short 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 Xtrackers Short and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Short Duration and John Hancock Exchange Traded, you can compare the effects of market volatilities on Xtrackers Short 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 Xtrackers Short with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Short and John Hancock.
Diversification Opportunities for Xtrackers Short and John Hancock
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and John is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Short Duration and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and Xtrackers Short 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 Xtrackers Short Duration 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 Exchange has no effect on the direction of Xtrackers Short i.e., Xtrackers Short and John Hancock go up and down completely randomly.
Pair Corralation between Xtrackers Short and John Hancock
Given the investment horizon of 90 days Xtrackers Short Duration is expected to generate 0.69 times more return on investment than John Hancock. However, Xtrackers Short Duration is 1.44 times less risky than John Hancock. It trades about 0.12 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.05 per unit of risk. If you would invest 3,787 in Xtrackers Short Duration on September 2, 2024 and sell it today you would earn a total of 760.00 from holding Xtrackers Short Duration or generate 20.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Short Duration vs. John Hancock Exchange Traded
Performance |
| Timeline |
| Xtrackers Short Duration |
| John Hancock Exchange |
Xtrackers Short and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Short and John Hancock
The main advantage of trading using opposite Xtrackers Short and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Short 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.| Xtrackers Short vs. Xtrackers High Beta | Xtrackers Short vs. Xtrackers Low Beta | Xtrackers Short vs. iShares Edge High | Xtrackers Short vs. PGIM Active High |
| John Hancock vs. SSGA Active Trust | John Hancock vs. BlackRock Intermediate Muni | John Hancock vs. iShares BBB Rated | John Hancock vs. Xtrackers Short Duration |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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