Correlation Between Nuveen Senior and John Hancock
Can any of the company-specific risk be diversified away by investing in both Nuveen Senior 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 Senior 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 Senior Income and John Hancock Tax Advantaged, you can compare the effects of market volatilities on Nuveen Senior 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 Senior with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Senior and John Hancock.
Diversification Opportunities for Nuveen Senior and John Hancock
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuveen and John is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Senior Income and John Hancock Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Tax and Nuveen Senior 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 Senior Income 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 Tax has no effect on the direction of Nuveen Senior i.e., Nuveen Senior and John Hancock go up and down completely randomly.
Pair Corralation between Nuveen Senior and John Hancock
If you would invest 486.00 in John Hancock Tax Advantaged on November 3, 2024 and sell it today you would earn a total of 0.00 from holding John Hancock Tax Advantaged or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Senior Income vs. John Hancock Tax Advantaged
Performance |
| Timeline |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Hancock Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Senior and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Senior and John Hancock
The main advantage of trading using opposite Nuveen Senior and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Senior 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 Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
| John Hancock vs. Virtus Global Multi | John Hancock vs. Brandywineglobal Globalome Opportunities | John Hancock vs. RiverNorth Specialty Finance | John Hancock vs. Western Asset Mortgage |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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