Correlation Between American Funds and Nuveen High
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and Nuveen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Capital and Nuveen High Income, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Nuveen High.
Diversification Opportunities for American Funds and Nuveen High
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Nuveen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Capital and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Income and American Funds 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 American Funds Capital 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 Income has no effect on the direction of American Funds i.e., American Funds and Nuveen High go up and down completely randomly.
Pair Corralation between American Funds and Nuveen High
Assuming the 90 days horizon American Funds is expected to generate 1.03 times less return on investment than Nuveen High. In addition to that, American Funds is 1.88 times more volatile than Nuveen High Income. It trades about 0.09 of its total potential returns per unit of risk. Nuveen High Income is currently generating about 0.17 per unit of volatility. If you would invest 543.00 in Nuveen High Income on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Nuveen High Income or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Capital vs. Nuveen High Income
Performance |
| Timeline |
| American Funds Capital |
| Nuveen High Income |
American Funds and Nuveen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Nuveen High
The main advantage of trading using opposite American Funds and Nuveen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Allianzgi Convertible Income | American Funds vs. Fidelity Sai Convertible | American Funds vs. Absolute Convertible Arbitrage | American Funds vs. Rationalpier 88 Convertible |
| Nuveen High vs. Df Dent Small | Nuveen High vs. Mutual Of America | Nuveen High vs. Ab Small Cap | Nuveen High 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |