Correlation Between John Hancock and Nuveen Municipal
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Municipal 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 Municipal 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 Municipal High, you can compare the effects of market volatilities on John Hancock and Nuveen Municipal 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 Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Municipal.
Diversification Opportunities for John Hancock and Nuveen Municipal
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between John and Nuveen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Nuveen Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipal High 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 Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipal High has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Municipal go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Municipal
Considering the 90-day investment horizon John Hancock is expected to generate 1.82 times less return on investment than Nuveen Municipal. But when comparing it to its historical volatility, John Hancock Income is 1.14 times less risky than Nuveen Municipal. It trades about 0.09 of its potential returns per unit of risk. Nuveen Municipal High is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 922.00 in Nuveen Municipal High on September 4, 2024 and sell it today you would earn a total of 233.00 from holding Nuveen Municipal High or generate 25.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Nuveen Municipal High
Performance |
| Timeline |
| John Hancock Income |
| Nuveen Municipal High |
John Hancock and Nuveen Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Municipal
The main advantage of trading using opposite John Hancock and Nuveen Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Municipal 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 Municipal will offset losses from the drop in Nuveen Municipal's 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 Municipal vs. Artisan Small Cap | Nuveen Municipal vs. Eip Growth And | Nuveen Municipal vs. Champlain Mid Cap | Nuveen Municipal vs. Chase Growth Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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