Correlation Between Nuveen Real and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nuveen Real 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 Real 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 Real Asset and John Hancock Global, you can compare the effects of market volatilities on Nuveen Real 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 Real with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Real and John Hancock.
Diversification Opportunities for Nuveen Real and John Hancock
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and John is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Real Asset and John Hancock Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Global and Nuveen Real 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 Real Asset 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 Global has no effect on the direction of Nuveen Real i.e., Nuveen Real and John Hancock go up and down completely randomly.
Pair Corralation between Nuveen Real and John Hancock
Assuming the 90 days horizon Nuveen Real is expected to generate 1.78 times less return on investment than John Hancock. But when comparing it to its historical volatility, Nuveen Real Asset is 1.34 times less risky than John Hancock. It trades about 0.07 of its potential returns per unit of risk. John Hancock Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 951.00 in John Hancock Global on September 13, 2024 and sell it today you would earn a total of 289.00 from holding John Hancock Global or generate 30.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nuveen Real Asset vs. John Hancock Global
Performance |
| Timeline |
| Nuveen Real Asset |
| John Hancock Global |
Nuveen Real and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Real and John Hancock
The main advantage of trading using opposite Nuveen Real and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Real 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 Real vs. John Hancock Global | Nuveen Real vs. Blackrock Incm Ptf | Nuveen Real vs. Federated Strategic Value | Nuveen Real vs. Global Diversified Income |
| John Hancock vs. Royce Global Financial | John Hancock vs. John Hancock Financial | John Hancock vs. Blackrock Financial Institutions | John Hancock vs. Mesirow Financial Small |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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