Correlation Between John Hancock and Deutsche Health
Can any of the company-specific risk be diversified away by investing in both John Hancock and Deutsche Health 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 Deutsche Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Funds and Deutsche Health And, you can compare the effects of market volatilities on John Hancock and Deutsche Health 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 Deutsche Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Deutsche Health.
Diversification Opportunities for John Hancock and Deutsche Health
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Deutsche is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Funds and Deutsche Health And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Health And 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 Funds are associated (or correlated) with Deutsche Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Health And has no effect on the direction of John Hancock i.e., John Hancock and Deutsche Health go up and down completely randomly.
Pair Corralation between John Hancock and Deutsche Health
Assuming the 90 days horizon John Hancock is expected to generate 4.95 times less return on investment than Deutsche Health. But when comparing it to its historical volatility, John Hancock Funds is 2.95 times less risky than Deutsche Health. It trades about 0.12 of its potential returns per unit of risk. Deutsche Health And is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,079 in Deutsche Health And on September 4, 2025 and sell it today you would earn a total of 490.00 from holding Deutsche Health And or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Funds vs. Deutsche Health And
Performance |
| Timeline |
| John Hancock Funds |
| Deutsche Health And |
John Hancock and Deutsche Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Deutsche Health
The main advantage of trading using opposite John Hancock and Deutsche Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Deutsche Health 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 Deutsche Health will offset losses from the drop in Deutsche Health's long position.| John Hancock vs. Global Real Estate | John Hancock vs. Fidelity Real Estate | John Hancock vs. Nuveen Real Estate | John Hancock vs. Virtus Real Estate |
| Deutsche Health vs. Alger Health Sciences | Deutsche Health vs. Alger Health Sciences | Deutsche Health vs. Blackrock Health Sciences | Deutsche Health vs. Hartford Healthcare Hls |
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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