Correlation Between Nuveen All and Nuveen Intermediate
Can any of the company-specific risk be diversified away by investing in both Nuveen All and Nuveen Intermediate 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 Intermediate 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 Intermediate Duration, you can compare the effects of market volatilities on Nuveen All and Nuveen Intermediate 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 Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All and Nuveen Intermediate.
Diversification Opportunities for Nuveen All and Nuveen Intermediate
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Nuveen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Nuveen Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Intermediate 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 Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Intermediate has no effect on the direction of Nuveen All i.e., Nuveen All and Nuveen Intermediate go up and down completely randomly.
Pair Corralation between Nuveen All and Nuveen Intermediate
Assuming the 90 days horizon Nuveen All American Municipal is expected to generate 1.13 times more return on investment than Nuveen Intermediate. However, Nuveen All is 1.13 times more volatile than Nuveen Intermediate Duration. It trades about 0.1 of its potential returns per unit of risk. Nuveen Intermediate Duration is currently generating about 0.11 per unit of risk. If you would invest 990.00 in Nuveen All American Municipal on September 3, 2024 and sell it today you would earn a total of 36.00 from holding Nuveen All American Municipal or generate 3.64% 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 Intermediate Duration
Performance |
| Timeline |
| Nuveen All American |
| Nuveen Intermediate |
Nuveen All and Nuveen Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All and Nuveen Intermediate
The main advantage of trading using opposite Nuveen All and Nuveen Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All position performs unexpectedly, Nuveen Intermediate 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 Intermediate will offset losses from the drop in Nuveen Intermediate's long position.| Nuveen All vs. Small Pany Growth | Nuveen All vs. Pace Large Growth | Nuveen All vs. Franklin Growth Opportunities | Nuveen All vs. L Abbett Growth |
| Nuveen Intermediate vs. John Hancock Financial | Nuveen Intermediate vs. Gabelli Global Financial | Nuveen Intermediate vs. Royce Global Financial | Nuveen Intermediate vs. Prudential Jennison Financial |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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