Correlation Between Nuveen All-american and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and Oklahoma Municipal 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 Oklahoma Municipal 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 Oklahoma Municipal Fund, you can compare the effects of market volatilities on Nuveen All-american and Oklahoma Municipal 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 Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and Oklahoma Municipal.
Diversification Opportunities for Nuveen All-american and Oklahoma Municipal
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Nuveen and Oklahoma is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal 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 Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Nuveen All-american and Oklahoma Municipal
Assuming the 90 days horizon Nuveen All-american is expected to generate 1.07 times less return on investment than Oklahoma Municipal. But when comparing it to its historical volatility, Nuveen All American Municipal is 1.24 times less risky than Oklahoma Municipal. It trades about 0.21 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,046 in Oklahoma Municipal Fund on December 1, 2024 and sell it today you would earn a total of 10.00 from holding Oklahoma Municipal Fund or generate 0.96% 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. Oklahoma Municipal Fund
Performance |
| Timeline |
| Nuveen All American |
| Oklahoma Municipal |
Nuveen All-american and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and Oklahoma Municipal
The main advantage of trading using opposite Nuveen All-american and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Nuveen All-american vs. Neiman Large Cap | Nuveen All-american vs. Transamerica Large Cap | Nuveen All-american vs. Fidelity Large Cap | Nuveen All-american vs. Tiaa Cref Large Cap Growth |
| Oklahoma Municipal vs. Ms Global Fixed | Oklahoma Municipal vs. Ab Global Real | Oklahoma Municipal vs. Scharf Global Opportunity | Oklahoma Municipal vs. Rbb Fund Trust |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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