Correlation Between Ab Municipal and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Nuveen Core 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 Municipal and Nuveen Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Nuveen Core Equity, you can compare the effects of market volatilities on Ab Municipal and Nuveen Core 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 Municipal with a short position of Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Nuveen Core.
Diversification Opportunities for Ab Municipal and Nuveen Core
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUNTX and Nuveen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Nuveen Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Equity and Ab Municipal 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 Municipal Bond are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Equity has no effect on the direction of Ab Municipal i.e., Ab Municipal and Nuveen Core go up and down completely randomly.
Pair Corralation between Ab Municipal and Nuveen Core
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.16 times more return on investment than Nuveen Core. However, Ab Municipal Bond is 6.1 times less risky than Nuveen Core. It trades about -0.12 of its potential returns per unit of risk. Nuveen Core Equity is currently generating about -0.16 per unit of risk. If you would invest 1,076 in Ab Municipal Bond on December 8, 2024 and sell it today you would lose (5.00) from holding Ab Municipal Bond or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Nuveen Core Equity
Performance |
| Timeline |
| Ab Municipal Bond |
| Nuveen Core Equity |
Ab Municipal and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Nuveen Core
The main advantage of trading using opposite Ab Municipal and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Nuveen Core 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 Core will offset losses from the drop in Nuveen Core's long position.| Ab Municipal vs. Growth Fund Of | ||
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| Ab Municipal vs. L Abbett Growth |
| Nuveen Core vs. The Hartford Growth | ||
| Nuveen Core vs. Tax Managed Large Cap | ||
| Nuveen Core vs. Dodge Cox Stock | ||
| Nuveen Core vs. Guidemark Large Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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