Correlation Between Bruce Fund and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Bruce Fund and Nuveen Preferred 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 Bruce Fund and Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Nuveen Preferred And, you can compare the effects of market volatilities on Bruce Fund and Nuveen Preferred 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 Bruce Fund with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Nuveen Preferred.
Diversification Opportunities for Bruce Fund and Nuveen Preferred
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bruce and Nuveen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Nuveen Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred And and Bruce Fund 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 Bruce Fund Bruce are associated (or correlated) with Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred And has no effect on the direction of Bruce Fund i.e., Bruce Fund and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Bruce Fund and Nuveen Preferred
If you would invest 1,611 in Nuveen Preferred And on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen Preferred And or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Nuveen Preferred And
Performance |
| Timeline |
| Bruce Fund Bruce |
| Nuveen Preferred And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bruce Fund and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Nuveen Preferred
The main advantage of trading using opposite Bruce Fund and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund position performs unexpectedly, Nuveen Preferred 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 Preferred will offset losses from the drop in Nuveen Preferred's long position.| Bruce Fund vs. Janus Global Technology | Bruce Fund vs. Biotechnology Ultrasector Profund | Bruce Fund vs. Pgim Jennison Technology | Bruce Fund vs. Allianzgi Technology Fund |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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