Correlation Between Capital One and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Capital One and Nuveen Select 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 Select 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 Select Tax Free, you can compare the effects of market volatilities on Capital One and Nuveen Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital One and Nuveen Select.
Diversification Opportunities for Capital One and Nuveen Select
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capital and Nuveen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and Nuveen Select Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Tax 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Tax has no effect on the direction of Capital One i.e., Capital One and Nuveen Select go up and down completely randomly.
Pair Corralation between Capital One and Nuveen Select
Considering the 90-day investment horizon Capital One Financial is expected to generate 2.79 times more return on investment than Nuveen Select. However, Capital One is 2.79 times more volatile than Nuveen Select Tax Free. It trades about 0.08 of its potential returns per unit of risk. Nuveen Select Tax Free is currently generating about 0.04 per unit of risk. If you would invest 11,188 in Capital One Financial on September 12, 2024 and sell it today you would earn a total of 7,205 from holding Capital One Financial or generate 64.4% 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 Select Tax Free
Performance |
| Timeline |
| Capital One Financial |
| Nuveen Select Tax |
Capital One and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital One and Nuveen Select
The main advantage of trading using opposite Capital One and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital One position performs unexpectedly, Nuveen Select 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 Select will offset losses from the drop in Nuveen Select's long position.| Capital One vs. Victory Integrity Smallmid Cap | Capital One vs. Hilton Worldwide Holdings | Capital One vs. NVIDIA | Capital One vs. JPMorgan Chase Co |
| Nuveen Select vs. Nuveen Dividend Advantage | Nuveen Select vs. Nuveen Amt Free Municipal | Nuveen Select vs. Nuveen Municipal Credit | Nuveen Select vs. Nuveen Amt Free |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |