Correlation Between Nuveen Small and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Nuveen Small and Nuveen Winslow 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 Winslow 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 Winslow Large Cap, you can compare the effects of market volatilities on Nuveen Small and Nuveen Winslow 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 Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Small and Nuveen Winslow.
Diversification Opportunities for Nuveen Small and Nuveen Winslow
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Nuveen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Small Cap and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large 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 Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Nuveen Small i.e., Nuveen Small and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Nuveen Small and Nuveen Winslow
Assuming the 90 days horizon Nuveen Small is expected to generate 1.21 times less return on investment than Nuveen Winslow. In addition to that, Nuveen Small is 1.04 times more volatile than Nuveen Winslow Large Cap. It trades about 0.07 of its total potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.09 per unit of volatility. If you would invest 4,927 in Nuveen Winslow Large Cap on August 26, 2024 and sell it today you would earn a total of 1,970 from holding Nuveen Winslow Large Cap or generate 39.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Small Cap vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Nuveen Small Cap |
| Nuveen Winslow Large |
Nuveen Small and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Small and Nuveen Winslow
The main advantage of trading using opposite Nuveen Small and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Small position performs unexpectedly, Nuveen Winslow 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 Winslow will offset losses from the drop in Nuveen Winslow's long position.| Nuveen Small vs. Nuveen Real Estate | Nuveen Small vs. Nuveen Real Estate | Nuveen Small vs. Nuveen Preferred Securities | Nuveen Small vs. Nuveen Preferred Securities |
| Nuveen Winslow vs. Chestnut Street Exchange | Nuveen Winslow vs. Cref Money Market | Nuveen Winslow vs. American Century California | Nuveen Winslow vs. Ubs Money Series |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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