Correlation Between Nuveen Minnesota and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Fidelity Managed 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 Minnesota and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Minnesota Municipal and Fidelity Managed Retirement, you can compare the effects of market volatilities on Nuveen Minnesota and Fidelity Managed 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 Minnesota with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Fidelity Managed.
Diversification Opportunities for Nuveen Minnesota and Fidelity Managed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Fidelity is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Fidelity Managed Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Managed Ret and Nuveen Minnesota 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 Minnesota Municipal are associated (or correlated) with Fidelity Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Managed Ret has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Fidelity Managed go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Fidelity Managed
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.83 times more return on investment than Fidelity Managed. However, Nuveen Minnesota Municipal is 1.2 times less risky than Fidelity Managed. It trades about 0.18 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.1 per unit of risk. If you would invest 1,075 in Nuveen Minnesota Municipal on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Nuveen Minnesota Municipal or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Fidelity Managed Ret |
Nuveen Minnesota and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Fidelity Managed
The main advantage of trading using opposite Nuveen Minnesota and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Fidelity Managed 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 Fidelity Managed will offset losses from the drop in Fidelity Managed's long position.| Nuveen Minnesota vs. Deutsche Health And | Nuveen Minnesota vs. Tekla Healthcare Opportunities | Nuveen Minnesota vs. Baillie Gifford Health | Nuveen Minnesota vs. Highland Longshort Healthcare |
| Fidelity Managed vs. Federated Ohio Municipal | Fidelity Managed vs. Nuveen Minnesota Municipal | Fidelity Managed vs. Pace Municipal Fixed | Fidelity Managed vs. Alliancebernstein National Municipal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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