Correlation Between Nuveen All-american and All Asset
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and All Asset 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 All Asset 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 All Asset Fund, you can compare the effects of market volatilities on Nuveen All-american and All Asset 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 All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and All Asset.
Diversification Opportunities for Nuveen All-american and All Asset
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and All is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund 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 All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and All Asset go up and down completely randomly.
Pair Corralation between Nuveen All-american and All Asset
Assuming the 90 days horizon Nuveen All American Municipal is expected to generate 0.77 times more return on investment than All Asset. However, Nuveen All American Municipal is 1.31 times less risky than All Asset. It trades about -0.04 of its potential returns per unit of risk. All Asset Fund is currently generating about -0.09 per unit of risk. If you would invest 1,028 in Nuveen All American Municipal on August 29, 2024 and sell it today you would lose (5.00) from holding Nuveen All American Municipal or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen All American Municipal vs. All Asset Fund
Performance |
| Timeline |
| Nuveen All American |
| All Asset Fund |
Nuveen All-american and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and All Asset
The main advantage of trading using opposite Nuveen All-american and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset's long position.The idea behind Nuveen All American Municipal and All Asset Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| All Asset vs. All Asset Fund | All Asset vs. HUMANA INC | All Asset vs. Aquagold International | All Asset vs. Barloworld Ltd ADR |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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