Correlation Between Baird Strategic and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Baird Strategic and Nuveen Minnesota 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 Baird Strategic and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Strategic Municipal and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Baird Strategic and Nuveen Minnesota 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 Baird Strategic with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Strategic and Nuveen Minnesota.
Diversification Opportunities for Baird Strategic and Nuveen Minnesota
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baird and Nuveen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Baird Strategic Municipal and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Baird Strategic 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 Baird Strategic Municipal are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Baird Strategic i.e., Baird Strategic and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Baird Strategic and Nuveen Minnesota
Assuming the 90 days horizon Baird Strategic is expected to generate 1.37 times less return on investment than Nuveen Minnesota. But when comparing it to its historical volatility, Baird Strategic Municipal is 1.49 times less risky than Nuveen Minnesota. It trades about 0.16 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,076 in Nuveen Minnesota Municipal on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Nuveen Minnesota Municipal or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Strategic Municipal vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Baird Strategic Municipal |
| Nuveen Minnesota Mun |
Baird Strategic and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Strategic and Nuveen Minnesota
The main advantage of trading using opposite Baird Strategic and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Strategic position performs unexpectedly, Nuveen Minnesota 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 Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Baird Strategic vs. Baird Aggregate Bond | Baird Strategic vs. Baird Aggregate Bond | Baird Strategic vs. Baird Short Term Bond | Baird Strategic vs. Baird Short Term Bond |
| Nuveen Minnesota vs. Ms Global Fixed | Nuveen Minnesota vs. Ab Global Bond | Nuveen Minnesota vs. Us Global Investors | Nuveen Minnesota vs. Ab Global Risk |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |