Correlation Between Ab High and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Ab High and Nuveen Minnesota 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 High and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Ab High and Nuveen Minnesota 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 High with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Nuveen Minnesota.
Diversification Opportunities for Ab High and Nuveen Minnesota
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGDIX and Nuveen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Ab High 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 High Income are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Ab High i.e., Ab High and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Ab High and Nuveen Minnesota
Assuming the 90 days horizon Ab High Income is expected to generate 0.79 times more return on investment than Nuveen Minnesota. However, Ab High Income is 1.26 times less risky than Nuveen Minnesota. It trades about 0.12 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about -0.04 per unit of risk. If you would invest 703.00 in Ab High Income on November 3, 2024 and sell it today you would earn a total of 3.00 from holding Ab High Income or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Ab High Income |
| Nuveen Minnesota Mun |
Ab High and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Nuveen Minnesota
The main advantage of trading using opposite Ab High and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Nuveen Minnesota 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 Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Ab High vs. Aig Government Money | Ab High vs. Angel Oak Financial | Ab High vs. Voya Government Money | Ab High vs. Schwab Government Money |
| Nuveen Minnesota vs. Intermediate Government Bond | Nuveen Minnesota vs. Payden Government Fund | Nuveen Minnesota vs. Inverse Government Long | Nuveen Minnesota vs. Us Government Securities |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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