Correlation Between First American and Nuveen High
Can any of the company-specific risk be diversified away by investing in both First American and Nuveen High 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 American and Nuveen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Investment and Nuveen High Yield, you can compare the effects of market volatilities on First American and Nuveen High 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 American with a short position of Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Nuveen High.
Diversification Opportunities for First American and Nuveen High
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Nuveen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding First American Investment and Nuveen High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Yield and First American 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 American Investment are associated (or correlated) with Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Yield has no effect on the direction of First American i.e., First American and Nuveen High go up and down completely randomly.
Pair Corralation between First American and Nuveen High
Assuming the 90 days horizon First American Investment is expected to generate 3.8 times more return on investment than Nuveen High. However, First American is 3.8 times more volatile than Nuveen High Yield. It trades about 0.28 of its potential returns per unit of risk. Nuveen High Yield is currently generating about 0.19 per unit of risk. If you would invest 3,249 in First American Investment on August 28, 2024 and sell it today you would earn a total of 367.00 from holding First American Investment or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First American Investment vs. Nuveen High Yield
Performance |
| Timeline |
| First American Investment |
| Nuveen High Yield |
First American and Nuveen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Nuveen High
The main advantage of trading using opposite First American and Nuveen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Nuveen High 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 High will offset losses from the drop in Nuveen High's long position.| First American vs. Nuveen Mid Cap | First American vs. Nuveen Mid Cap | First American vs. Nuveen Small Cap | First American vs. Nuveen Small Cap |
| Nuveen High vs. Oppenheimer Rochester High | Nuveen High vs. Oppenheimer Rochester Amt Free | Nuveen High vs. Nuveen All American Municipal | Nuveen High vs. Invesco High Yield |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |