Correlation Between Nuveen High and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nuveen High and John Hancock 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 Nuveen High and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen High Income and John Hancock Income, you can compare the effects of market volatilities on Nuveen High and John Hancock 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 Nuveen High with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and John Hancock.
Diversification Opportunities for Nuveen High and John Hancock
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and John is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Income and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income and Nuveen High 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 Nuveen High Income are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Income has no effect on the direction of Nuveen High i.e., Nuveen High and John Hancock go up and down completely randomly.
Pair Corralation between Nuveen High and John Hancock
If you would invest 939.00 in Nuveen High Income on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen High Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nuveen High Income vs. John Hancock Income
Performance |
| Timeline |
| Nuveen High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Income |
Nuveen High and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and John Hancock
The main advantage of trading using opposite Nuveen High and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Nuveen High vs. MFS Investment Grade | Nuveen High vs. Eaton Vance National | Nuveen High vs. Invesco High Income | Nuveen High vs. Nuveen California Select |
| John Hancock vs. Aurora Innovation | John Hancock vs. HUMANA INC | John Hancock vs. Aquagold International | John Hancock vs. Barloworld Ltd ADR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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