Correlation Between A10 Network and Nuveen California
Can any of the company-specific risk be diversified away by investing in both A10 Network and Nuveen California 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 A10 Network and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A10 Network and Nuveen California Municipal, you can compare the effects of market volatilities on A10 Network and Nuveen California 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 A10 Network with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of A10 Network and Nuveen California.
Diversification Opportunities for A10 Network and Nuveen California
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between A10 and Nuveen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding A10 Network and Nuveen California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California and A10 Network 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 A10 Network are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California has no effect on the direction of A10 Network i.e., A10 Network and Nuveen California go up and down completely randomly.
Pair Corralation between A10 Network and Nuveen California
Given the investment horizon of 90 days A10 Network is expected to under-perform the Nuveen California. In addition to that, A10 Network is 8.22 times more volatile than Nuveen California Municipal. It trades about -0.09 of its total potential returns per unit of risk. Nuveen California Municipal is currently generating about -0.11 per unit of volatility. If you would invest 1,009 in Nuveen California Municipal on December 8, 2024 and sell it today you would lose (5.00) from holding Nuveen California Municipal or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
A10 Network vs. Nuveen California Municipal
Performance |
| Timeline |
| A10 Network |
| Nuveen California |
A10 Network and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A10 Network and Nuveen California
The main advantage of trading using opposite A10 Network and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A10 Network position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| A10 Network vs. Evertec | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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