Correlation Between Saba Capital and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Saba Capital 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 Saba Capital and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Capital Income and Nuveen California Municipal, you can compare the effects of market volatilities on Saba Capital 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 Saba Capital with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Capital and Nuveen California.
Diversification Opportunities for Saba Capital and Nuveen California
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Saba and Nuveen is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Saba Capital Income and Nuveen California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California and Saba Capital 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 Saba Capital Income 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 Saba Capital i.e., Saba Capital and Nuveen California go up and down completely randomly.
Pair Corralation between Saba Capital and Nuveen California
Considering the 90-day investment horizon Saba Capital Income is expected to generate 2.53 times more return on investment than Nuveen California. However, Saba Capital is 2.53 times more volatile than Nuveen California Municipal. It trades about 0.09 of its potential returns per unit of risk. Nuveen California Municipal is currently generating about 0.14 per unit of risk. If you would invest 764.00 in Saba Capital Income on October 21, 2024 and sell it today you would earn a total of 13.00 from holding Saba Capital Income or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saba Capital Income vs. Nuveen California Municipal
Performance |
| Timeline |
| Saba Capital Income |
| Nuveen California |
Saba Capital and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Capital and Nuveen California
The main advantage of trading using opposite Saba Capital and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Capital 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.| Saba Capital vs. Federated Premier Municipal | Saba Capital vs. Blackrock Muniyield | Saba Capital vs. Diamond Hill Investment | Saba Capital vs. NXG NextGen Infrastructure |
| Nuveen California vs. Nuveen California Select | Nuveen California vs. Nuveen New York | Nuveen California vs. Nuveen California Dividend | Nuveen California vs. Nuveen California Amt |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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