Correlation Between Nuveen Santa and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nuveen Santa 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 Santa 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 Santa Barbara and John Hancock Ii, you can compare the effects of market volatilities on Nuveen Santa 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 Santa with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Santa and John Hancock.
Diversification Opportunities for Nuveen Santa and John Hancock
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and John is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Santa Barbara and John Hancock Ii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Ii and Nuveen Santa 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 Santa Barbara 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 Ii has no effect on the direction of Nuveen Santa i.e., Nuveen Santa and John Hancock go up and down completely randomly.
Pair Corralation between Nuveen Santa and John Hancock
Assuming the 90 days horizon Nuveen Santa Barbara is expected to generate 0.56 times more return on investment than John Hancock. However, Nuveen Santa Barbara is 1.8 times less risky than John Hancock. It trades about 0.09 of its potential returns per unit of risk. John Hancock Ii is currently generating about 0.03 per unit of risk. If you would invest 4,983 in Nuveen Santa Barbara on September 14, 2024 and sell it today you would earn a total of 1,728 from holding Nuveen Santa Barbara or generate 34.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nuveen Santa Barbara vs. John Hancock Ii
Performance |
| Timeline |
| Nuveen Santa Barbara |
| John Hancock Ii |
Nuveen Santa and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Santa and John Hancock
The main advantage of trading using opposite Nuveen Santa and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Santa 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 Santa vs. John Hancock Ii | Nuveen Santa vs. Queens Road Small | Nuveen Santa vs. Vanguard Small Cap Value | Nuveen Santa vs. William Blair Small |
| John Hancock vs. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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