Correlation Between Birkenstock Holding and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Birkenstock Holding 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 Birkenstock Holding and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Birkenstock Holding plc and Nuveen California Municipal, you can compare the effects of market volatilities on Birkenstock Holding 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 Birkenstock Holding with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Birkenstock Holding and Nuveen California.
Diversification Opportunities for Birkenstock Holding and Nuveen California
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Birkenstock and Nuveen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Birkenstock Holding plc and Nuveen California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California and Birkenstock Holding 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 Birkenstock Holding plc 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 Birkenstock Holding i.e., Birkenstock Holding and Nuveen California go up and down completely randomly.
Pair Corralation between Birkenstock Holding and Nuveen California
Given the investment horizon of 90 days Birkenstock Holding plc is expected to under-perform the Nuveen California. In addition to that, Birkenstock Holding is 8.45 times more volatile than Nuveen California Municipal. It trades about -0.58 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Birkenstock Holding plc vs. Nuveen California Municipal
Performance |
| Timeline |
| Birkenstock Holding plc |
| Nuveen California |
Birkenstock Holding and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Birkenstock Holding and Nuveen California
The main advantage of trading using opposite Birkenstock Holding and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Birkenstock Holding 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.| Birkenstock Holding vs. National Beverage Corp | ||
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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