Correlation Between John Hancock and Dodge Cox

Can any of the company-specific risk be diversified away by investing in both John Hancock and Dodge Cox 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 Dodge Cox into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between John Hancock Variable and Dodge Global Stock, you can compare the effects of market volatilities on John Hancock and Dodge Cox 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 Dodge Cox. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Dodge Cox.

Diversification Opportunities for John Hancock and Dodge Cox

0.0

Correlation Coefficient

John Hancock  Dodge Cox

Pay attention - limited upside

The 3 months correlation between John and Dodge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Variable and Dodge Global Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dodge Global Stock 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 Variable are associated (or correlated) with Dodge Cox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dodge Global Stock has no effect on the direction of John Hancock i.e., John Hancock and Dodge Cox go up and down completely randomly.

Pair Corralation between John Hancock and Dodge Cox

If you would invest  1,327  in Dodge Global Stock on October 7, 2024 and sell it today you would earn a total of  48.00  from holding Dodge Global Stock or generate 3.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

John Hancock Variable  vs.  Dodge Global Stock

John Hancock Variable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Variable has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, John Hancock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dodge Global Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dodge Global Stock has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with John Hancock and Dodge Cox

The main advantage of trading using opposite John Hancock and Dodge Cox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Dodge Cox 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 Dodge Cox will offset losses from the drop in Dodge Cox's long position.

The idea behind John Hancock Variable and Dodge Global Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.