Correlation Between Nuveen All-american and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and Nuveen California 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 California 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 California High, you can compare the effects of market volatilities on Nuveen All-american and Nuveen California 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 California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and Nuveen California.
Diversification Opportunities for Nuveen All-american and Nuveen California
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Nuveen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Nuveen California High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California High 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 California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California High has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and Nuveen California go up and down completely randomly.
Pair Corralation between Nuveen All-american and Nuveen California
Assuming the 90 days horizon Nuveen All-american is expected to generate 1.6 times less return on investment than Nuveen California. But when comparing it to its historical volatility, Nuveen All American Municipal is 1.58 times less risky than Nuveen California. It trades about 0.21 of its potential returns per unit of risk. Nuveen California High is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 796.00 in Nuveen California High on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Nuveen California High or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen All American Municipal vs. Nuveen California High
Performance |
| Timeline |
| Nuveen All American |
| Nuveen California High |
Nuveen All-american and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and Nuveen California
The main advantage of trading using opposite Nuveen All-american and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| Nuveen All-american vs. Federated Institutional High | Nuveen All-american vs. Ab High Income | Nuveen All-american vs. Pioneer High Yield | Nuveen All-american vs. California High Yield Municipal |
| Nuveen California vs. Siit High Yield | Nuveen California vs. Western Asset High | Nuveen California vs. Artisan High Income | Nuveen California vs. Msift 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |