Correlation Between First Eagle and Nuveen California
Can any of the company-specific risk be diversified away by investing in both First Eagle and Nuveen California 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 First Eagle and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Alternative and Nuveen California Select, you can compare the effects of market volatilities on First Eagle and Nuveen California 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 First Eagle with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Nuveen California.
Diversification Opportunities for First Eagle and Nuveen California
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Nuveen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Alternative and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select and First Eagle 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 First Eagle Alternative are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of First Eagle i.e., First Eagle and Nuveen California go up and down completely randomly.
Pair Corralation between First Eagle and Nuveen California
If you would invest 1,273 in Nuveen California Select on August 31, 2024 and sell it today you would earn a total of 87.00 from holding Nuveen California Select or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
First Eagle Alternative vs. Nuveen California Select
Performance |
| Timeline |
| First Eagle Alternative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen California Select |
First Eagle and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Nuveen California
The main advantage of trading using opposite First Eagle and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| First Eagle vs. BBX Capital | First Eagle vs. Highland Funds I | First Eagle vs. Azimut Holding SpA | First Eagle vs. Ameritrans Capital Corp |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Invesco High Income | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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