Correlation Between Ab Value and Nuveen Strategic
Can any of the company-specific risk be diversified away by investing in both Ab Value and Nuveen Strategic 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 Ab Value and Nuveen Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Nuveen Strategic Income, you can compare the effects of market volatilities on Ab Value and Nuveen Strategic 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 Ab Value with a short position of Nuveen Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Nuveen Strategic.
Diversification Opportunities for Ab Value and Nuveen Strategic
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABVCX and Nuveen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Nuveen Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Strategic Income and Ab Value 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 Ab Value Fund are associated (or correlated) with Nuveen Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Strategic Income has no effect on the direction of Ab Value i.e., Ab Value and Nuveen Strategic go up and down completely randomly.
Pair Corralation between Ab Value and Nuveen Strategic
Assuming the 90 days horizon Ab Value Fund is expected to generate 3.45 times more return on investment than Nuveen Strategic. However, Ab Value is 3.45 times more volatile than Nuveen Strategic Income. It trades about 0.34 of its potential returns per unit of risk. Nuveen Strategic Income is currently generating about 0.15 per unit of risk. If you would invest 1,943 in Ab Value Fund on August 30, 2024 and sell it today you would earn a total of 125.00 from holding Ab Value Fund or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Nuveen Strategic Income
Performance |
| Timeline |
| Ab Value Fund |
| Nuveen Strategic Income |
Ab Value and Nuveen Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Nuveen Strategic
The main advantage of trading using opposite Ab Value and Nuveen Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Nuveen Strategic 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 Strategic will offset losses from the drop in Nuveen Strategic's long position.| Ab Value vs. Kinetics Market Opportunities | Ab Value vs. Bbh Intermediate Municipal | Ab Value vs. Ambrus Core Bond | Ab Value vs. Blrc Sgy Mnp |
| Nuveen Strategic vs. Ultra Short Fixed Income | Nuveen Strategic vs. Blrc Sgy Mnp | Nuveen Strategic vs. Icon Bond Fund | Nuveen Strategic vs. Ambrus Core Bond |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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