Correlation Between Nuveen Real and Western Assets
Can any of the company-specific risk be diversified away by investing in both Nuveen Real and Western Assets 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 Real and Western Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Real Estate and Western Assets Emerging, you can compare the effects of market volatilities on Nuveen Real and Western Assets 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 Real with a short position of Western Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Real and Western Assets.
Diversification Opportunities for Nuveen Real and Western Assets
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Western is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Real Estate and Western Assets Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Assets Emerging and Nuveen Real 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 Real Estate are associated (or correlated) with Western Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Assets Emerging has no effect on the direction of Nuveen Real i.e., Nuveen Real and Western Assets go up and down completely randomly.
Pair Corralation between Nuveen Real and Western Assets
Assuming the 90 days horizon Nuveen Real is expected to generate 4.49 times less return on investment than Western Assets. In addition to that, Nuveen Real is 2.66 times more volatile than Western Assets Emerging. It trades about 0.01 of its total potential returns per unit of risk. Western Assets Emerging is currently generating about 0.08 per unit of volatility. If you would invest 922.00 in Western Assets Emerging on October 25, 2024 and sell it today you would earn a total of 150.00 from holding Western Assets Emerging or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Real Estate vs. Western Assets Emerging
Performance |
| Timeline |
| Nuveen Real Estate |
| Western Assets Emerging |
Nuveen Real and Western Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Real and Western Assets
The main advantage of trading using opposite Nuveen Real and Western Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Real position performs unexpectedly, Western Assets 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 Western Assets will offset losses from the drop in Western Assets' long position.| Nuveen Real vs. Blackrock Hi Yld | Nuveen Real vs. Blackrock Equity Dividend | Nuveen Real vs. Oppenheimer Senior Floating | Nuveen Real vs. American Beacon Bridgeway |
| Western Assets vs. Tax Managed Mid Small | Western Assets vs. Ab Small Cap | Western Assets vs. Smallcap Fund Fka | Western Assets vs. Kinetics Small Cap |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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