Correlation Between John Hancock and Nuveen Massachusetts
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Massachusetts 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 Massachusetts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Income and Nuveen Massachusetts Quality, you can compare the effects of market volatilities on John Hancock and Nuveen Massachusetts 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 Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Massachusetts.
Diversification Opportunities for John Hancock and Nuveen Massachusetts
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Nuveen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Nuveen Massachusetts Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Massachusetts 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 Income are associated (or correlated) with Nuveen Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Massachusetts has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Massachusetts go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Massachusetts
Considering the 90-day investment horizon John Hancock is expected to generate 1.48 times less return on investment than Nuveen Massachusetts. But when comparing it to its historical volatility, John Hancock Income is 1.63 times less risky than Nuveen Massachusetts. It trades about 0.08 of its potential returns per unit of risk. Nuveen Massachusetts Quality is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Nuveen Massachusetts Quality on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Nuveen Massachusetts Quality or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
John Hancock Income vs. Nuveen Massachusetts Quality
Performance |
| Timeline |
| John Hancock Income |
| Nuveen Massachusetts |
John Hancock and Nuveen Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Massachusetts
The main advantage of trading using opposite John Hancock and Nuveen Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Massachusetts 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 Massachusetts will offset losses from the drop in Nuveen Massachusetts' long position.| John Hancock vs. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
| Nuveen Massachusetts vs. Eaton Vance National | Nuveen Massachusetts vs. Blackrock Enhanced Government | Nuveen Massachusetts vs. The Gabelli Utility | Nuveen Massachusetts vs. Nuveen California Municipal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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