Correlation Between CBH and Nuveen Mortgage
Can any of the company-specific risk be diversified away by investing in both CBH and Nuveen Mortgage 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 CBH and Nuveen Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Nuveen Mortgage Opportunity, you can compare the effects of market volatilities on CBH and Nuveen Mortgage 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 CBH with a short position of Nuveen Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Nuveen Mortgage.
Diversification Opportunities for CBH and Nuveen Mortgage
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CBH and Nuveen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Nuveen Mortgage Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mortgage Oppo and CBH 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 CBH are associated (or correlated) with Nuveen Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mortgage Oppo has no effect on the direction of CBH i.e., CBH and Nuveen Mortgage go up and down completely randomly.
Pair Corralation between CBH and Nuveen Mortgage
If you would invest 1,790 in Nuveen Mortgage Opportunity on September 18, 2024 and sell it today you would earn a total of 41.00 from holding Nuveen Mortgage Opportunity or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 9.52% |
| Values | Daily Returns |
CBH vs. Nuveen Mortgage Opportunity
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Mortgage Oppo |
CBH and Nuveen Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Nuveen Mortgage
The main advantage of trading using opposite CBH and Nuveen Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Nuveen Mortgage 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 Mortgage will offset losses from the drop in Nuveen Mortgage's long position.| CBH vs. Brookfield Real Assets | CBH vs. Guggenheim Strategic Opportunities | CBH vs. Cornerstone Strategic Return | CBH vs. Cornerstone Strategic Value |
| Nuveen Mortgage vs. Brandywineglobal Globalome Opportunities | Nuveen Mortgage vs. RiverNorth Specialty Finance | Nuveen Mortgage vs. Western Asset Mortgage | Nuveen Mortgage vs. Stone Harbor Emerging |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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