Correlation Between Dow Jones and Nuveen Growth
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Nuveen Growth 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 Dow Jones and Nuveen Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Nuveen Growth Opportunities, you can compare the effects of market volatilities on Dow Jones and Nuveen Growth 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 Dow Jones with a short position of Nuveen Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Nuveen Growth.
Diversification Opportunities for Dow Jones and Nuveen Growth
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dow and Nuveen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Nuveen Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Growth Opport and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Nuveen Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Growth Opport has no effect on the direction of Dow Jones i.e., Dow Jones and Nuveen Growth go up and down completely randomly.
Pair Corralation between Dow Jones and Nuveen Growth
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.59 times more return on investment than Nuveen Growth. However, Dow Jones Industrial is 1.68 times less risky than Nuveen Growth. It trades about 0.1 of its potential returns per unit of risk. Nuveen Growth Opportunities is currently generating about -0.05 per unit of risk. If you would invest 4,290,695 in Dow Jones Industrial on October 23, 2024 and sell it today you would earn a total of 58,088 from holding Dow Jones Industrial or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dow Jones Industrial vs. Nuveen Growth Opportunities
Performance |
| Timeline |
Dow Jones and Nuveen Growth Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Nuveen Growth Opportunities
Pair trading matchups for Nuveen Growth
Pair Trading with Dow Jones and Nuveen Growth
The main advantage of trading using opposite Dow Jones and Nuveen Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Nuveen Growth 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 Growth will offset losses from the drop in Nuveen Growth's long position.| Dow Jones vs. Grupo Televisa SAB | Dow Jones vs. NiSource | Dow Jones vs. Kinetik Holdings | Dow Jones vs. Empresa Distribuidora y |
| Nuveen Growth vs. Invesco ESG NASDAQ | Nuveen Growth vs. Nuveen Winslow Large Cap | Nuveen Growth vs. Sterling Capital Focus | Nuveen Growth vs. First Trust Exchange Traded |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |