Correlation Between Bank of New York and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Nuveen Amt-free 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 Bank of New York and Nuveen Amt-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Nuveen Amt Free Municipal, you can compare the effects of market volatilities on Bank of New York and Nuveen Amt-free 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 Bank of New York with a short position of Nuveen Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Nuveen Amt-free.
Diversification Opportunities for Bank of New York and Nuveen Amt-free
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Nuveen is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free and Bank of New York 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 Bank of New are associated (or correlated) with Nuveen Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Bank of New York i.e., Bank of New York and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Bank of New York and Nuveen Amt-free
Allowing for the 90-day total investment horizon Bank of New is expected to generate 1.69 times more return on investment than Nuveen Amt-free. However, Bank of New York is 1.69 times more volatile than Nuveen Amt Free Municipal. It trades about 0.21 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.04 per unit of risk. If you would invest 7,651 in Bank of New on August 27, 2024 and sell it today you would earn a total of 363.00 from holding Bank of New or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of New vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Bank of New York |
| Nuveen Amt Free |
Bank of New York and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Nuveen Amt-free
The main advantage of trading using opposite Bank of New York and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free's long position.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| Nuveen Amt-free vs. Nuveen New York | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Pimco New York | Nuveen Amt-free vs. Nuveen Municipalome |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |