Correlation Between John Hancock and Nuveen Municipalome
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Municipalome 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 Municipalome 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 Municipalome, you can compare the effects of market volatilities on John Hancock and Nuveen Municipalome 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 Municipalome. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Municipalome.
Diversification Opportunities for John Hancock and Nuveen Municipalome
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Nuveen is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Nuveen Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipalome 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 Municipalome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipalome has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Municipalome go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Municipalome
Considering the 90-day investment horizon John Hancock Financial is expected to generate 2.11 times more return on investment than Nuveen Municipalome. However, John Hancock is 2.11 times more volatile than Nuveen Municipalome. It trades about 0.04 of its potential returns per unit of risk. Nuveen Municipalome is currently generating about 0.03 per unit of risk. If you would invest 2,912 in John Hancock Financial on August 28, 2024 and sell it today you would earn a total of 1,033 from holding John Hancock Financial or generate 35.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Nuveen Municipalome
Performance |
| Timeline |
| John Hancock Financial |
| Nuveen Municipalome |
John Hancock and Nuveen Municipalome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Municipalome
The main advantage of trading using opposite John Hancock and Nuveen Municipalome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Municipalome 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 Municipalome will offset losses from the drop in Nuveen Municipalome'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 Municipalome vs. DTF Tax Free | Nuveen Municipalome vs. MFS High Yield | Nuveen Municipalome vs. MFS High Income | Nuveen Municipalome vs. John Hancock Income |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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