Correlation Between Jhancock Diversified and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Jhancock Diversified and Nuveen Preferred 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 Jhancock Diversified and Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Diversified Macro and Nuveen Preferred Securities, you can compare the effects of market volatilities on Jhancock Diversified and Nuveen Preferred 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 Jhancock Diversified with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Nuveen Preferred.
Diversification Opportunities for Jhancock Diversified and Nuveen Preferred
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jhancock and Nuveen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Nuveen Preferred Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred Sec and Jhancock Diversified 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 Jhancock Diversified Macro are associated (or correlated) with Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred Sec has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Nuveen Preferred
Assuming the 90 days horizon Jhancock Diversified Macro is expected to generate 2.9 times more return on investment than Nuveen Preferred. However, Jhancock Diversified is 2.9 times more volatile than Nuveen Preferred Securities. It trades about 0.39 of its potential returns per unit of risk. Nuveen Preferred Securities is currently generating about 0.2 per unit of risk. If you would invest 882.00 in Jhancock Diversified Macro on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Jhancock Diversified Macro or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Nuveen Preferred Securities
Performance |
| Timeline |
| Jhancock Diversified |
| Nuveen Preferred Sec |
Jhancock Diversified and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Nuveen Preferred
The main advantage of trading using opposite Jhancock Diversified and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Diversified position performs unexpectedly, Nuveen Preferred 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 Preferred will offset losses from the drop in Nuveen Preferred's long position.| Jhancock Diversified vs. Locorr Market Trend | Jhancock Diversified vs. Pnc Emerging Markets | Jhancock Diversified vs. Western Asset Diversified | Jhancock Diversified vs. Extended Market Index |
| Nuveen Preferred vs. Jhancock Diversified Macro | Nuveen Preferred vs. Small Cap Stock | Nuveen Preferred vs. Tiaa Cref Small Cap Blend | Nuveen Preferred vs. Huber Capital Diversified |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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