Correlation Between John Hancock and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Global 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 Nuveen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Hedged and Nuveen Global High, you can compare the effects of market volatilities on John Hancock and Nuveen Global 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 Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Global.
Diversification Opportunities for John Hancock and Nuveen Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and Nuveen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Hedged and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High 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 Hedged are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Global go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Global
Considering the 90-day investment horizon John Hancock is expected to generate 1.46 times less return on investment than Nuveen Global. In addition to that, John Hancock is 1.46 times more volatile than Nuveen Global High. It trades about 0.08 of its total potential returns per unit of risk. Nuveen Global High is currently generating about 0.16 per unit of volatility. If you would invest 1,246 in Nuveen Global High on December 27, 2024 and sell it today you would earn a total of 54.00 from holding Nuveen Global High or generate 4.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Hedged vs. Nuveen Global High
Performance |
Timeline |
John Hancock Hedged |
Nuveen Global High |
John Hancock and Nuveen Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Nuveen Global
The main advantage of trading using opposite John Hancock and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Global 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 Nuveen Global will offset losses from the drop in Nuveen Global's long position.John Hancock vs. Ellsworth Convertible Growth | John Hancock vs. Delaware Investments Florida | John Hancock vs. RENN Fund | John Hancock vs. Nuveen New Jersey |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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