Correlation Between John Hancock and Nuveen Mid
Can any of the company-specific risk be diversified away by investing in both John Hancock and Nuveen Mid 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 Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Disciplined and Nuveen Mid Cap, you can compare the effects of market volatilities on John Hancock and Nuveen Mid 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 Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Nuveen Mid.
Diversification Opportunities for John Hancock and Nuveen Mid
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between John and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Disciplined and Nuveen Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mid Cap 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 Disciplined are associated (or correlated) with Nuveen Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mid Cap has no effect on the direction of John Hancock i.e., John Hancock and Nuveen Mid go up and down completely randomly.
Pair Corralation between John Hancock and Nuveen Mid
Assuming the 90 days horizon John Hancock Disciplined is expected to generate 0.93 times more return on investment than Nuveen Mid. However, John Hancock Disciplined is 1.07 times less risky than Nuveen Mid. It trades about 0.07 of its potential returns per unit of risk. Nuveen Mid Cap is currently generating about 0.06 per unit of risk. If you would invest 2,370 in John Hancock Disciplined on August 31, 2024 and sell it today you would earn a total of 699.00 from holding John Hancock Disciplined or generate 29.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Disciplined vs. Nuveen Mid Cap
Performance |
| Timeline |
| John Hancock Disciplined |
| Nuveen Mid Cap |
John Hancock and Nuveen Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Nuveen Mid
The main advantage of trading using opposite John Hancock and Nuveen Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Nuveen Mid 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 Mid will offset losses from the drop in Nuveen Mid's long position.| John Hancock vs. John Hancock Disciplined | John Hancock vs. John Hancock Bond | John Hancock vs. Us Global Leaders | John Hancock vs. Mfs International Value |
| Nuveen Mid vs. Fidelity Low Priced Stock | Nuveen Mid vs. Fidelity Low Priced Stock | Nuveen Mid vs. Vanguard Mid Cap Value | Nuveen Mid vs. John Hancock Disciplined |
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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