Correlation Between Sterling Capital and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Sterling Capital and Nuveen Kansas 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 Sterling Capital and Nuveen Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Capital Short and Nuveen Kansas Municipal, you can compare the effects of market volatilities on Sterling Capital and Nuveen Kansas 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 Sterling Capital with a short position of Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Capital and Nuveen Kansas.
Diversification Opportunities for Sterling Capital and Nuveen Kansas
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sterling and Nuveen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Capital Short and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal and Sterling 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 Sterling Capital Short are associated (or correlated) with Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Sterling Capital i.e., Sterling Capital and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Sterling Capital and Nuveen Kansas
Assuming the 90 days horizon Sterling Capital is expected to generate 1.05 times less return on investment than Nuveen Kansas. But when comparing it to its historical volatility, Sterling Capital Short is 1.64 times less risky than Nuveen Kansas. It trades about 0.2 of its potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 995.00 in Nuveen Kansas Municipal on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Nuveen Kansas Municipal or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Capital Short vs. Nuveen Kansas Municipal
Performance |
| Timeline |
| Sterling Capital Short |
| Nuveen Kansas Municipal |
Sterling Capital and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Capital and Nuveen Kansas
The main advantage of trading using opposite Sterling Capital and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Capital position performs unexpectedly, Nuveen Kansas 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 Kansas will offset losses from the drop in Nuveen Kansas' long position.| Sterling Capital vs. World Precious Minerals | Sterling Capital vs. Global Gold Fund | Sterling Capital vs. Investment Managers Series | Sterling Capital vs. Deutsche Gold Precious |
| Nuveen Kansas vs. Doubleline E Fixed | Nuveen Kansas vs. Doubleline Total Return | Nuveen Kansas vs. Ab Bond Inflation | Nuveen Kansas vs. Intermediate Term Bond Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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