Correlation Between Nuveen All-american and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and Nuveen Preferred 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-american and Nuveen Preferred 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 Preferred Securities, you can compare the effects of market volatilities on Nuveen All-american and Nuveen Preferred 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-american with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and Nuveen Preferred.
Diversification Opportunities for Nuveen All-american and Nuveen Preferred
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Nuveen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Nuveen Preferred Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred Sec and Nuveen All-american 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 Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred Sec has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Nuveen All-american and Nuveen Preferred
Assuming the 90 days horizon Nuveen All-american is expected to generate 2.2 times less return on investment than Nuveen Preferred. But when comparing it to its historical volatility, Nuveen All American Municipal is 2.67 times less risky than Nuveen Preferred. It trades about 0.09 of its potential returns per unit of risk. Nuveen Preferred Securities is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,319 in Nuveen Preferred Securities on August 31, 2024 and sell it today you would earn a total of 247.00 from holding Nuveen Preferred Securities or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen All American Municipal vs. Nuveen Preferred Securities
Performance |
| Timeline |
| Nuveen All American |
| Nuveen Preferred Sec |
Nuveen All-american and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and Nuveen Preferred
The main advantage of trading using opposite Nuveen All-american and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, Nuveen Preferred 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 Preferred will offset losses from the drop in Nuveen Preferred's long position.| Nuveen All-american vs. Allianzgi Technology Fund | Nuveen All-american vs. Pgim Jennison Technology | Nuveen All-american vs. Science Technology Fund | Nuveen All-american vs. Hennessy Technology Fund |
| Nuveen Preferred vs. Pimco Mortgage Opportunities | Nuveen Preferred vs. Cohen Steers Preferred | Nuveen Preferred vs. Jpmorgan Mortgage Backed Securities | Nuveen Preferred vs. Muzinich Low Duration |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |