Correlation Between FAM and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both FAM and Nuveen Global 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 FAM and Nuveen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAM and Nuveen Global High, you can compare the effects of market volatilities on FAM and Nuveen Global 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 FAM with a short position of Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAM and Nuveen Global.
Diversification Opportunities for FAM and Nuveen Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FAM and Nuveen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding FAM and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High and FAM 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 FAM are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of FAM i.e., FAM and Nuveen Global go up and down completely randomly.
Pair Corralation between FAM and Nuveen Global
If you would invest 1,275 in Nuveen Global High on August 25, 2024 and sell it today you would earn a total of 34.00 from holding Nuveen Global High or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
FAM vs. Nuveen Global High
Performance |
| Timeline |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Nuveen Global High |
FAM and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAM and Nuveen Global
The main advantage of trading using opposite FAM and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAM position performs unexpectedly, Nuveen Global 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 Global will offset losses from the drop in Nuveen Global's long position.| FAM vs. MFS Investment Grade | FAM vs. Invesco High Income | FAM vs. Eaton Vance National | FAM vs. Nuveen California Select |
| Nuveen Global vs. Advent Claymore Convertible | Nuveen Global vs. Blackstone Gso Strategic | Nuveen Global vs. Western Asset Investment | Nuveen Global vs. Pioneer Floating Rate |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |