Correlation Between SPDR Nuveen and John Hancock
Can any of the company-specific risk be diversified away by investing in both SPDR Nuveen 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 SPDR Nuveen and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Nuveen Municipal and John Hancock Exchange Traded, you can compare the effects of market volatilities on SPDR Nuveen 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 SPDR Nuveen with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Nuveen and John Hancock.
Diversification Opportunities for SPDR Nuveen and John Hancock
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and John is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Nuveen Municipal and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange and SPDR Nuveen 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 SPDR Nuveen Municipal 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 Exchange has no effect on the direction of SPDR Nuveen i.e., SPDR Nuveen and John Hancock go up and down completely randomly.
Pair Corralation between SPDR Nuveen and John Hancock
Given the investment horizon of 90 days SPDR Nuveen is expected to generate 2.72 times less return on investment than John Hancock. But when comparing it to its historical volatility, SPDR Nuveen Municipal is 1.25 times less risky than John Hancock. It trades about 0.07 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,365 in John Hancock Exchange Traded on August 26, 2024 and sell it today you would earn a total of 293.00 from holding John Hancock Exchange Traded or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 53.92% |
| Values | Daily Returns |
SPDR Nuveen Municipal vs. John Hancock Exchange Traded
Performance |
| Timeline |
| SPDR Nuveen Municipal |
| John Hancock Exchange |
SPDR Nuveen and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Nuveen and John Hancock
The main advantage of trading using opposite SPDR Nuveen and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Nuveen 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.| SPDR Nuveen vs. BlackRock Intermediate Muni | SPDR Nuveen vs. SSGA Active Trust | SPDR Nuveen vs. SPDR MarketAxess Investment | SPDR Nuveen vs. SSGA Active Trust |
| John Hancock vs. SSGA Active Trust | John Hancock vs. SPDR Nuveen Municipal | John Hancock vs. Xtrackers California Municipal | John Hancock vs. iShares Short Maturity |
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 Stocks Directory module to find actively traded stocks across global markets.
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