Correlation Between Nuveen Small and Abbey Capital
Can any of the company-specific risk be diversified away by investing in both Nuveen Small and Abbey Capital 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 Small and Abbey Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Small Cap and Abbey Capital Futures, you can compare the effects of market volatilities on Nuveen Small and Abbey Capital 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 Small with a short position of Abbey Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Small and Abbey Capital.
Diversification Opportunities for Nuveen Small and Abbey Capital
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and Abbey is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Small Cap and Abbey Capital Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbey Capital Futures and Nuveen Small 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 Small Cap are associated (or correlated) with Abbey Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbey Capital Futures has no effect on the direction of Nuveen Small i.e., Nuveen Small and Abbey Capital go up and down completely randomly.
Pair Corralation between Nuveen Small and Abbey Capital
Assuming the 90 days horizon Nuveen Small Cap is expected to generate 2.19 times more return on investment than Abbey Capital. However, Nuveen Small is 2.19 times more volatile than Abbey Capital Futures. It trades about 0.11 of its potential returns per unit of risk. Abbey Capital Futures is currently generating about 0.06 per unit of risk. If you would invest 1,558 in Nuveen Small Cap on November 7, 2024 and sell it today you would earn a total of 38.00 from holding Nuveen Small Cap or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Small Cap vs. Abbey Capital Futures
Performance |
| Timeline |
| Nuveen Small Cap |
| Abbey Capital Futures |
Nuveen Small and Abbey Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Small and Abbey Capital
The main advantage of trading using opposite Nuveen Small and Abbey Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Small position performs unexpectedly, Abbey Capital 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 Abbey Capital will offset losses from the drop in Abbey Capital's long position.| Nuveen Small vs. Great West Government Mortgage | Nuveen Small vs. Wesmark Government Bond | Nuveen Small vs. Aig Government Money | Nuveen Small vs. Dunham Porategovernment Bond |
| Abbey Capital vs. Invesco Energy Fund | Abbey Capital vs. Adams Natural Resources | Abbey Capital vs. Gamco Natural Resources | Abbey Capital vs. Alpsalerian Energy Infrastructure |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |