Correlation Between Ellsworth Convertible and Nuveen New
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible 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 Ellsworth Convertible and Nuveen New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and Nuveen New York, you can compare the effects of market volatilities on Ellsworth Convertible 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 Ellsworth Convertible with a short position of Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Nuveen New.
Diversification Opportunities for Ellsworth Convertible and Nuveen New
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ellsworth and Nuveen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth 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 Ellsworth Convertible 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 Ellsworth Convertible Growth 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 Ellsworth Convertible i.e., Ellsworth Convertible and Nuveen New go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Nuveen New
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 1.44 times more return on investment than Nuveen New. However, Ellsworth Convertible is 1.44 times more volatile than Nuveen New York. It trades about 0.36 of its potential returns per unit of risk. Nuveen New York is currently generating about -0.03 per unit of risk. If you would invest 883.00 in Ellsworth Convertible Growth on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Ellsworth Convertible Growth or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. Nuveen New York
Performance |
| Timeline |
| Ellsworth Convertible |
| Nuveen New York |
Ellsworth Convertible and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Nuveen New
The main advantage of trading using opposite Ellsworth Convertible and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible 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.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| Nuveen New vs. MFS Investment Grade | Nuveen New vs. Invesco High Income | Nuveen New vs. Eaton Vance National | Nuveen New vs. Federated Premier Municipal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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