Correlation Between Capital One and Nuveen New
Can any of the company-specific risk be diversified away by investing in both Capital One and Nuveen New 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 Capital One and Nuveen New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital One Financial and Nuveen New York, you can compare the effects of market volatilities on Capital One and Nuveen New 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 Capital One with a short position of Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital One and Nuveen New.
Diversification Opportunities for Capital One and Nuveen New
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Nuveen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York and Capital One 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 Capital One Financial are associated (or correlated) with Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of Capital One i.e., Capital One and Nuveen New go up and down completely randomly.
Pair Corralation between Capital One and Nuveen New
Considering the 90-day investment horizon Capital One Financial is expected to generate 10.48 times more return on investment than Nuveen New. However, Capital One is 10.48 times more volatile than Nuveen New York. It trades about 0.22 of its potential returns per unit of risk. Nuveen New York is currently generating about 0.02 per unit of risk. If you would invest 16,076 in Capital One Financial on September 4, 2024 and sell it today you would earn a total of 2,676 from holding Capital One Financial or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital One Financial vs. Nuveen New York
Performance |
| Timeline |
| Capital One Financial |
| Nuveen New York |
Capital One and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital One and Nuveen New
The main advantage of trading using opposite Capital One and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital One position performs unexpectedly, Nuveen New 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 New will offset losses from the drop in Nuveen New's long position.| Capital One vs. Mastercard | Capital One vs. Visa Class A | Capital One vs. PayPal Holdings | Capital One vs. Ally Financial |
| Nuveen New vs. Western Asset Municipal | Nuveen New vs. Nuveen Massachusetts Quality | Nuveen New vs. Fiera Capital | Nuveen New vs. European Equity Closed |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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