Correlation Between Eic Value and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Eic Value and Nuveen Minnesota 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 Eic Value and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Eic Value and Nuveen Minnesota 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 Eic Value with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Nuveen Minnesota.
Diversification Opportunities for Eic Value and Nuveen Minnesota
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eic and Nuveen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Eic Value 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 Eic Value Fund are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Eic Value i.e., Eic Value and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Eic Value and Nuveen Minnesota
Assuming the 90 days horizon Eic Value Fund is expected to generate 2.73 times more return on investment than Nuveen Minnesota. However, Eic Value is 2.73 times more volatile than Nuveen Minnesota Municipal. It trades about 0.11 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.08 per unit of risk. If you would invest 1,477 in Eic Value Fund on August 31, 2024 and sell it today you would earn a total of 445.00 from holding Eic Value Fund or generate 30.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Eic Value Fund vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Eic Value Fund |
| Nuveen Minnesota Mun |
Eic Value and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Nuveen Minnesota
The main advantage of trading using opposite Eic Value and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Nuveen Minnesota 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 Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Eic Value vs. Rbc Funds Trust | Eic Value vs. Nasdaq 100 Index Fund | Eic Value vs. Victory Incore Fund | Eic Value vs. Shelton Funds |
| Nuveen Minnesota vs. Deutsche Health And | Nuveen Minnesota vs. Tekla Healthcare Opportunities | Nuveen Minnesota vs. Baillie Gifford Health | Nuveen Minnesota vs. Highland Longshort Healthcare |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |