Correlation Between Nuveen All-american and Mfs Prudent
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and Mfs Prudent 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 Mfs Prudent 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 Mfs Prudent Investor, you can compare the effects of market volatilities on Nuveen All-american and Mfs Prudent 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 Mfs Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and Mfs Prudent.
Diversification Opportunities for Nuveen All-american and Mfs Prudent
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NUVEEN and Mfs is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Mfs Prudent Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Prudent Investor 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 Mfs Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Prudent Investor has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and Mfs Prudent go up and down completely randomly.
Pair Corralation between Nuveen All-american and Mfs Prudent
Assuming the 90 days horizon Nuveen All American Municipal is expected to generate 0.8 times more return on investment than Mfs Prudent. However, Nuveen All American Municipal is 1.25 times less risky than Mfs Prudent. It trades about 0.14 of its potential returns per unit of risk. Mfs Prudent Investor is currently generating about -0.13 per unit of risk. If you would invest 1,012 in Nuveen All American Municipal on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Nuveen All American Municipal or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen All American Municipal vs. Mfs Prudent Investor
Performance |
| Timeline |
| Nuveen All American |
| Mfs Prudent Investor |
Nuveen All-american and Mfs Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and Mfs Prudent
The main advantage of trading using opposite Nuveen All-american and Mfs Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, Mfs Prudent 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 Mfs Prudent will offset losses from the drop in Mfs Prudent's long position.| Nuveen All-american vs. Nuveen Small Cap | Nuveen All-american vs. Nuveen Real Estate | Nuveen All-american vs. Nuveen Real Estate | Nuveen All-american vs. Nuveen Preferred Securities |
| Mfs Prudent vs. Nuveen All American Municipal | Mfs Prudent vs. Morningstar Defensive Bond | Mfs Prudent vs. Bbh Intermediate Municipal | Mfs Prudent vs. Franklin High Yield |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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