Correlation Between Nuveen All and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Nuveen All and Nuveen Kansas 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 All and Nuveen Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen All American Municipal and Nuveen Kansas Municipal, you can compare the effects of market volatilities on Nuveen All and Nuveen Kansas 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 All with a short position of Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All and Nuveen Kansas.
Diversification Opportunities for Nuveen All and Nuveen Kansas
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Nuveen and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal and Nuveen All 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 All American Municipal are associated (or correlated) with Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Nuveen All i.e., Nuveen All and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Nuveen All and Nuveen Kansas
Assuming the 90 days horizon Nuveen All American Municipal is expected to generate 1.07 times more return on investment than Nuveen Kansas. However, Nuveen All is 1.07 times more volatile than Nuveen Kansas Municipal. It trades about 0.07 of its potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.04 per unit of risk. If you would invest 930.00 in Nuveen All American Municipal on November 19, 2024 and sell it today you would earn a total of 84.00 from holding Nuveen All American Municipal or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen All American Municipal vs. Nuveen Kansas Municipal
Performance |
| Timeline |
| Nuveen All American |
| Nuveen Kansas Municipal |
Nuveen All and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All and Nuveen Kansas
The main advantage of trading using opposite Nuveen All and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All position performs unexpectedly, Nuveen Kansas 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 Kansas will offset losses from the drop in Nuveen Kansas' long position.| Nuveen All vs. Locorr Dynamic Equity | Nuveen All vs. Transamerica International Equity | Nuveen All vs. T Rowe Price | Nuveen All vs. Rbc China Equity |
| Nuveen Kansas vs. Nuveen Small Cap | Nuveen Kansas vs. Nuveen Real Estate | Nuveen Kansas vs. Nuveen Real Estate | Nuveen Kansas vs. Nuveen Preferred Securities |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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