Correlation Between Multi-manager Growth and Nuveen Symphony
Can any of the company-specific risk be diversified away by investing in both Multi-manager Growth and Nuveen Symphony 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 Multi-manager Growth and Nuveen Symphony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Manager Growth Strategies and Nuveen Symphony Floating, you can compare the effects of market volatilities on Multi-manager Growth and Nuveen Symphony 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 Multi-manager Growth with a short position of Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-manager Growth and Nuveen Symphony.
Diversification Opportunities for Multi-manager Growth and Nuveen Symphony
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi-manager and Nuveen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Growth Strategie and Nuveen Symphony Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Floating and Multi-manager Growth 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 Multi Manager Growth Strategies are associated (or correlated) with Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Floating has no effect on the direction of Multi-manager Growth i.e., Multi-manager Growth and Nuveen Symphony go up and down completely randomly.
Pair Corralation between Multi-manager Growth and Nuveen Symphony
Assuming the 90 days horizon Multi Manager Growth Strategies is expected to generate 6.25 times more return on investment than Nuveen Symphony. However, Multi-manager Growth is 6.25 times more volatile than Nuveen Symphony Floating. It trades about 0.08 of its potential returns per unit of risk. Nuveen Symphony Floating is currently generating about 0.24 per unit of risk. If you would invest 1,599 in Multi Manager Growth Strategies on September 2, 2024 and sell it today you would earn a total of 566.00 from holding Multi Manager Growth Strategies or generate 35.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Manager Growth Strategie vs. Nuveen Symphony Floating
Performance |
| Timeline |
| Multi Manager Growth |
| Nuveen Symphony Floating |
Multi-manager Growth and Nuveen Symphony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi-manager Growth and Nuveen Symphony
The main advantage of trading using opposite Multi-manager Growth and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-manager Growth position performs unexpectedly, Nuveen Symphony 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 Symphony will offset losses from the drop in Nuveen Symphony's long position.| Multi-manager Growth vs. Columbia Large Cap | Multi-manager Growth vs. Columbia Large Cap | Multi-manager Growth vs. Columbia Porate Income | Multi-manager Growth vs. Columbia Ultra Short |
| Nuveen Symphony vs. Nuveen Preferred Securities | Nuveen Symphony vs. Active Portfolios Multi Manager | Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Multi Manager Growth Strategies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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