Correlation Between Aberdeen Asia and Nuveen Municipalome
Can any of the company-specific risk be diversified away by investing in both Aberdeen Asia and Nuveen Municipalome 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 Aberdeen Asia and Nuveen Municipalome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Asia Pacific If and Nuveen Municipalome, you can compare the effects of market volatilities on Aberdeen Asia and Nuveen Municipalome 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 Aberdeen Asia with a short position of Nuveen Municipalome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Asia and Nuveen Municipalome.
Diversification Opportunities for Aberdeen Asia and Nuveen Municipalome
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aberdeen and Nuveen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Asia Pacific If and Nuveen Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipalome and Aberdeen Asia 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 Aberdeen Asia Pacific If are associated (or correlated) with Nuveen Municipalome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipalome has no effect on the direction of Aberdeen Asia i.e., Aberdeen Asia and Nuveen Municipalome go up and down completely randomly.
Pair Corralation between Aberdeen Asia and Nuveen Municipalome
Considering the 90-day investment horizon Aberdeen Asia Pacific If is expected to under-perform the Nuveen Municipalome. In addition to that, Aberdeen Asia is 2.13 times more volatile than Nuveen Municipalome. It trades about -0.19 of its total potential returns per unit of risk. Nuveen Municipalome is currently generating about -0.21 per unit of volatility. If you would invest 979.00 in Nuveen Municipalome on January 12, 2025 and sell it today you would lose (33.00) from holding Nuveen Municipalome or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aberdeen Asia Pacific If vs. Nuveen Municipalome
Performance |
| Timeline |
| Aberdeen Asia Pacific |
| Nuveen Municipalome |
Aberdeen Asia and Nuveen Municipalome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Asia and Nuveen Municipalome
The main advantage of trading using opposite Aberdeen Asia and Nuveen Municipalome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Asia position performs unexpectedly, Nuveen Municipalome 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 Municipalome will offset losses from the drop in Nuveen Municipalome's long position.| Aberdeen Asia vs. Aberdeen Australia Ef | Aberdeen Asia vs. Aberdeen Japan Equity | Aberdeen Asia vs. Stone Harbor Emerging | Aberdeen Asia vs. Aberdeen Global IF |
| Nuveen Municipalome vs. Platinum Asia Investments | Nuveen Municipalome vs. Eaton Vance New | Nuveen Municipalome vs. Nuveen New York | Nuveen Municipalome vs. Nuveen Amt Free Municipal |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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