Correlation Between CBH and NXG NextGen
Can any of the company-specific risk be diversified away by investing in both CBH and NXG NextGen 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 NXG NextGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and NXG NextGen Infrastructure, you can compare the effects of market volatilities on CBH and NXG NextGen 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 NXG NextGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and NXG NextGen.
Diversification Opportunities for CBH and NXG NextGen
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CBH and NXG is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CBH and NXG NextGen Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NXG NextGen Infrastr 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 NXG NextGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NXG NextGen Infrastr has no effect on the direction of CBH i.e., CBH and NXG NextGen go up and down completely randomly.
Pair Corralation between CBH and NXG NextGen
If you would invest 4,350 in NXG NextGen Infrastructure on August 28, 2024 and sell it today you would earn a total of 647.00 from holding NXG NextGen Infrastructure or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
CBH vs. NXG NextGen Infrastructure
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NXG NextGen Infrastr |
CBH and NXG NextGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and NXG NextGen
The main advantage of trading using opposite CBH and NXG NextGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, NXG NextGen 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 NXG NextGen will offset losses from the drop in NXG NextGen'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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