Correlation Between Nuveen Small and Nuveen Large
Can any of the company-specific risk be diversified away by investing in both Nuveen Small and Nuveen Large 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 Nuveen Small and Nuveen Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Small Cap and Nuveen Large Cap, you can compare the effects of market volatilities on Nuveen Small and Nuveen Large 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 Nuveen Small with a short position of Nuveen Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Small and Nuveen Large.
Diversification Opportunities for Nuveen Small and Nuveen Large
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Nuveen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Small Cap and Nuveen Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Large Cap and Nuveen Small 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 Nuveen Small Cap are associated (or correlated) with Nuveen Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Large Cap has no effect on the direction of Nuveen Small i.e., Nuveen Small and Nuveen Large go up and down completely randomly.
Pair Corralation between Nuveen Small and Nuveen Large
Assuming the 90 days horizon Nuveen Small Cap is expected to generate 1.01 times more return on investment than Nuveen Large. However, Nuveen Small is 1.01 times more volatile than Nuveen Large Cap. It trades about 0.04 of its potential returns per unit of risk. Nuveen Large Cap is currently generating about 0.0 per unit of risk. If you would invest 1,046 in Nuveen Small Cap on October 26, 2024 and sell it today you would earn a total of 55.00 from holding Nuveen Small Cap or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Small Cap vs. Nuveen Large Cap
Performance |
| Timeline |
| Nuveen Small Cap |
| Nuveen Large Cap |
Nuveen Small and Nuveen Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Small and Nuveen Large
The main advantage of trading using opposite Nuveen Small and Nuveen Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Small position performs unexpectedly, Nuveen Large 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 Large will offset losses from the drop in Nuveen Large's long position.| Nuveen Small vs. Calvert Conservative Allocation | Nuveen Small vs. Transamerica Asset Allocation | Nuveen Small vs. Franklin Servative Allocation | Nuveen Small vs. Voya Retirement Servative |
| Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Lazard Equity Centrated | Nuveen Large vs. Guggenheim Styleplus |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |