Correlation Between Wilmington Diversified and John Hancock
Can any of the company-specific risk be diversified away by investing in both Wilmington Diversified 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 Wilmington Diversified and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Diversified Income and John Hancock Variable, you can compare the effects of market volatilities on Wilmington Diversified 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 Wilmington Diversified with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Diversified and John Hancock.
Diversification Opportunities for Wilmington Diversified and John Hancock
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wilmington and John is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Diversified Income and John Hancock Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Variable and Wilmington Diversified 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 Wilmington Diversified Income 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 Variable has no effect on the direction of Wilmington Diversified i.e., Wilmington Diversified and John Hancock go up and down completely randomly.
Pair Corralation between Wilmington Diversified and John Hancock
Assuming the 90 days horizon Wilmington Diversified Income is expected to generate 6.74 times more return on investment than John Hancock. However, Wilmington Diversified is 6.74 times more volatile than John Hancock Variable. It trades about 0.14 of its potential returns per unit of risk. John Hancock Variable is currently generating about 0.09 per unit of risk. If you would invest 1,434 in Wilmington Diversified Income on September 6, 2025 and sell it today you would earn a total of 77.00 from holding Wilmington Diversified Income or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Diversified Income vs. John Hancock Variable
Performance |
| Timeline |
| Wilmington Diversified |
| John Hancock Variable |
Wilmington Diversified and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Diversified and John Hancock
The main advantage of trading using opposite Wilmington Diversified and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Diversified 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.| Wilmington Diversified vs. Pace Strategic Fixed | Wilmington Diversified vs. Federated Municipal High | Wilmington Diversified vs. Western Asset Municipal | Wilmington Diversified vs. Maryland Tax Free Bond |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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