Correlation Between CBH and Nuveen Short
Can any of the company-specific risk be diversified away by investing in both CBH and Nuveen Short 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 Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Nuveen Short Duration, you can compare the effects of market volatilities on CBH and Nuveen Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Nuveen Short.
Diversification Opportunities for CBH and Nuveen Short
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBH and Nuveen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Nuveen Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Short Duration has no effect on the direction of CBH i.e., CBH and Nuveen Short go up and down completely randomly.
Pair Corralation between CBH and Nuveen Short
Considering the 90-day investment horizon CBH is expected to generate 2.23 times less return on investment than Nuveen Short. In addition to that, CBH is 1.09 times more volatile than Nuveen Short Duration. It trades about 0.08 of its total potential returns per unit of risk. Nuveen Short Duration is currently generating about 0.19 per unit of volatility. If you would invest 1,122 in Nuveen Short Duration on August 31, 2024 and sell it today you would earn a total of 31.00 from holding Nuveen Short Duration or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 10.29% |
| Values | Daily Returns |
CBH vs. Nuveen Short Duration
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Short Duration |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBH and Nuveen Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Nuveen Short
The main advantage of trading using opposite CBH and Nuveen Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Nuveen Short 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 Short will offset losses from the drop in Nuveen Short's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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