Correlation Between Dunham Large and John Hancock
Can any of the company-specific risk be diversified away by investing in both Dunham Large 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 Dunham Large and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and John Hancock Esg, you can compare the effects of market volatilities on Dunham Large 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 Dunham Large with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and John Hancock.
Diversification Opportunities for Dunham Large and John Hancock
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dunham and John is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and John Hancock Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Esg and Dunham Large 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 Dunham Large Cap 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 Esg has no effect on the direction of Dunham Large i.e., Dunham Large and John Hancock go up and down completely randomly.
Pair Corralation between Dunham Large and John Hancock
Assuming the 90 days horizon Dunham Large Cap is expected to generate 0.92 times more return on investment than John Hancock. However, Dunham Large Cap is 1.09 times less risky than John Hancock. It trades about 0.2 of its potential returns per unit of risk. John Hancock Esg is currently generating about 0.12 per unit of risk. If you would invest 1,988 in Dunham Large Cap on June 8, 2025 and sell it today you would earn a total of 147.00 from holding Dunham Large Cap or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. John Hancock Esg
Performance |
| Timeline |
| Dunham Large Cap |
| John Hancock Esg |
Dunham Large and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and John Hancock
The main advantage of trading using opposite Dunham Large and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large 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.| Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Porategovernment Bond | Dunham Large vs. Dunham Small Cap |
| John Hancock vs. L Abbett Growth | John Hancock vs. Growth Fund C | John Hancock vs. Qs Defensive Growth | John Hancock vs. T Rowe Price |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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