Correlation Between John Hancock and Nuveen Real
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Real 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 Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Global and Nuveen Real Asset, you can compare the effects of market volatilities on John Hancock and Nuveen Real 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 Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Real.
Diversification Opportunities for John Hancock and Nuveen Real
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between John and NUVEEN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Global and Nuveen Real Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Asset 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 Global are associated (or correlated) with Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Asset has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Real go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Real
Assuming the 90 days horizon John Hancock Global is expected to generate 1.48 times more return on investment than Nuveen Real. However, John Hancock is 1.48 times more volatile than Nuveen Real Asset. It trades about 0.1 of its potential returns per unit of risk. Nuveen Real Asset is currently generating about 0.08 per unit of risk. If you would invest 1,044 in John Hancock Global on December 4, 2024 and sell it today you would earn a total of 173.00 from holding John Hancock Global or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Global vs. Nuveen Real Asset
Performance |
| Timeline |
| John Hancock Global |
| Nuveen Real Asset |
John Hancock and Nuveen Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Real
The main advantage of trading using opposite John Hancock and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Real 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 Real will offset losses from the drop in Nuveen Real's long position.| John Hancock vs. Doubleline Global Bond | John Hancock vs. Alliancebernstein Global Highome | John Hancock vs. Investec Global Franchise | John Hancock vs. Dws Global Macro |
| Nuveen Real vs. Nuveen Real Asset | Nuveen Real vs. Nuveen Real Asset | Nuveen Real vs. Columbia Trarian Core | Nuveen Real vs. Blackrock Incm Ptf |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |