Correlation Between John Hancock and Nuveen Intermediate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Intermediate 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 Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Nuveen Intermediate Duration, you can compare the effects of market volatilities on John Hancock and Nuveen Intermediate 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 Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Intermediate.
Diversification Opportunities for John Hancock and Nuveen Intermediate
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Nuveen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Nuveen Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Intermediate 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 Financial are associated (or correlated) with Nuveen Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Intermediate has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Intermediate go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Intermediate
Considering the 90-day investment horizon John Hancock Financial is expected to generate 6.95 times more return on investment than Nuveen Intermediate. However, John Hancock is 6.95 times more volatile than Nuveen Intermediate Duration. It trades about 0.39 of its potential returns per unit of risk. Nuveen Intermediate Duration is currently generating about 0.2 per unit of risk. If you would invest 3,378 in John Hancock Financial on September 3, 2024 and sell it today you would earn a total of 562.00 from holding John Hancock Financial or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Nuveen Intermediate Duration
Performance |
| Timeline |
| John Hancock Financial |
| Nuveen Intermediate |
John Hancock and Nuveen Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Intermediate
The main advantage of trading using opposite John Hancock and Nuveen Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Intermediate 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 Intermediate will offset losses from the drop in Nuveen Intermediate's long position.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Nuveen Intermediate vs. John Hancock Financial | Nuveen Intermediate vs. Gabelli Global Financial | Nuveen Intermediate vs. Royce Global Financial | Nuveen Intermediate vs. Prudential Jennison Financial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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