Correlation Between Boston Partners and Nuveen Municipal
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Nuveen Municipal 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 Boston Partners and Nuveen Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Nuveen Municipal Credit, you can compare the effects of market volatilities on Boston Partners and Nuveen Municipal 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 Boston Partners with a short position of Nuveen Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Nuveen Municipal.
Diversification Opportunities for Boston Partners and Nuveen Municipal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boston and Nuveen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Nuveen Municipal Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipal Credit and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with Nuveen Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipal Credit has no effect on the direction of Boston Partners i.e., Boston Partners and Nuveen Municipal go up and down completely randomly.
Pair Corralation between Boston Partners and Nuveen Municipal
Assuming the 90 days horizon Boston Partners Longshort is expected to under-perform the Nuveen Municipal. In addition to that, Boston Partners is 1.55 times more volatile than Nuveen Municipal Credit. It trades about -0.14 of its total potential returns per unit of risk. Nuveen Municipal Credit is currently generating about 0.53 per unit of volatility. If you would invest 1,177 in Nuveen Municipal Credit on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Nuveen Municipal Credit or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. Nuveen Municipal Credit
Performance |
| Timeline |
| Boston Partners Longshort |
| Nuveen Municipal Credit |
Boston Partners and Nuveen Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Nuveen Municipal
The main advantage of trading using opposite Boston Partners and Nuveen Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Nuveen Municipal 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 Municipal will offset losses from the drop in Nuveen Municipal's long position.| Boston Partners vs. Diamond Hill Long Short | Boston Partners vs. Pimco Rae Worldwide | Boston Partners vs. SCOR PK | Boston Partners vs. Morningstar Unconstrained Allocation |
| Nuveen Municipal vs. Dreyfus Short Intermediate | Nuveen Municipal vs. Touchstone Ultra Short | Nuveen Municipal vs. Boston Partners Longshort | Nuveen Municipal vs. Kentucky Tax Free Short To Medium |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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