Correlation Between Nuveen Large and White Oak
Can any of the company-specific risk be diversified away by investing in both Nuveen Large and White Oak 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 Large and White Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Large Cap and White Oak Select, you can compare the effects of market volatilities on Nuveen Large and White Oak 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 Large with a short position of White Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Large and White Oak.
Diversification Opportunities for Nuveen Large and White Oak
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and White is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Large Cap and White Oak Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Oak Select and Nuveen Large 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 Large Cap are associated (or correlated) with White Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Oak Select has no effect on the direction of Nuveen Large i.e., Nuveen Large and White Oak go up and down completely randomly.
Pair Corralation between Nuveen Large and White Oak
Assuming the 90 days horizon Nuveen Large Cap is expected to generate 0.97 times more return on investment than White Oak. However, Nuveen Large Cap is 1.03 times less risky than White Oak. It trades about 0.09 of its potential returns per unit of risk. White Oak Select is currently generating about 0.08 per unit of risk. If you would invest 3,129 in Nuveen Large Cap on August 24, 2024 and sell it today you would earn a total of 1,482 from holding Nuveen Large Cap or generate 47.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Large Cap vs. White Oak Select
Performance |
| Timeline |
| Nuveen Large Cap |
| White Oak Select |
Nuveen Large and White Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Large and White Oak
The main advantage of trading using opposite Nuveen Large and White Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Large position performs unexpectedly, White Oak 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 White Oak will offset losses from the drop in White Oak's long position.| Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Nuveen Large Cap | Nuveen Large vs. Janus Growth And | Nuveen Large vs. HUMANA INC |
| White Oak vs. Nuveen Large Cap | White Oak vs. Nuveen Large Cap | White Oak vs. HUMANA INC | White Oak vs. SCOR PK |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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