Correlation Between Barings Active and Nuveen Municipal
Can any of the company-specific risk be diversified away by investing in both Barings Active 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 Barings Active and Nuveen Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Nuveen Municipal High, you can compare the effects of market volatilities on Barings Active 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 Barings Active with a short position of Nuveen Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Nuveen Municipal.
Diversification Opportunities for Barings Active and Nuveen Municipal
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and Nuveen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Nuveen Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipal High and Barings Active 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 Barings Active Short 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 High has no effect on the direction of Barings Active i.e., Barings Active and Nuveen Municipal go up and down completely randomly.
Pair Corralation between Barings Active and Nuveen Municipal
Assuming the 90 days horizon Barings Active Short is expected to generate 0.31 times more return on investment than Nuveen Municipal. However, Barings Active Short is 3.18 times less risky than Nuveen Municipal. It trades about 0.2 of its potential returns per unit of risk. Nuveen Municipal High is currently generating about 0.0 per unit of risk. If you would invest 865.00 in Barings Active Short on October 18, 2024 and sell it today you would earn a total of 58.00 from holding Barings Active Short or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Nuveen Municipal High
Performance |
| Timeline |
| Barings Active Short |
| Nuveen Municipal High |
Barings Active and Nuveen Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Nuveen Municipal
The main advantage of trading using opposite Barings Active and Nuveen Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active 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.| Barings Active vs. Extended Market Index | Barings Active vs. Delaware Limited Term Diversified | Barings Active vs. Inverse Emerging Markets | Barings Active vs. Franklin Emerging Market |
| Nuveen Municipal vs. Cmg Ultra Short | Nuveen Municipal vs. Touchstone Ultra Short | Nuveen Municipal vs. Barings Active Short | Nuveen Municipal vs. Rbc Short Duration |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |