Correlation Between John Hancock and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Core 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 Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Tax Advantaged and Nuveen Core Equity, you can compare the effects of market volatilities on John Hancock and Nuveen Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Core.
Diversification Opportunities for John Hancock and Nuveen Core
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and Nuveen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Tax Advantaged and Nuveen Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Equity 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 Tax Advantaged are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Equity has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Core go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Core
If you would invest 1,512 in Nuveen Core Equity on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Nuveen Core Equity or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
John Hancock Tax Advantaged vs. Nuveen Core Equity
Performance |
| Timeline |
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Core Equity |
John Hancock and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Core
The main advantage of trading using opposite John Hancock and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Core 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 Core will offset losses from the drop in Nuveen Core's long position.| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
| Nuveen Core vs. MFS Investment Grade | Nuveen Core vs. Eaton Vance Municipal | Nuveen Core vs. DTF Tax Free | Nuveen Core vs. HUMANA INC |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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