Correlation Between Dws Emerging and John Hancock

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

By analyzing existing cross correlation between Dws Emerging Markets and John Hancock Emerging, you can compare the effects of market volatilities on Dws Emerging 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 Dws Emerging with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Emerging and John Hancock.

Diversification Opportunities for Dws Emerging and John Hancock

0.92

Correlation Coefficient

Dws Emerging  John Hancock

Almost no diversification

The 3 months correlation between Dws and John is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dws Emerging Markets and John Hancock Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Emerging and Dws Emerging 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 Dws Emerging Markets 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 Emerging has no effect on the direction of Dws Emerging i.e., Dws Emerging and John Hancock go up and down completely randomly.

Pair Corralation between Dws Emerging and John Hancock

Assuming the 90 days horizon Dws Emerging Markets is expected to generate 1.0 times more return on investment than John Hancock. However, Dws Emerging Markets is 1.0 times less risky than John Hancock. It trades about 0.01 of its potential returns per unit of risk. John Hancock Emerging is currently generating about 0.0 per unit of risk. If you would invest  1,795  in Dws Emerging Markets on October 11, 2024 and sell it today you would earn a total of  65.00  from holding Dws Emerging Markets or generate 3.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Dws Emerging Markets  vs.  John Hancock Emerging

Dws Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

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

John Hancock Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Dws Emerging and John Hancock

The main advantage of trading using opposite Dws Emerging and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Emerging 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.

The idea behind Dws Emerging Markets and John Hancock Emerging 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.