Correlation Between Nuveen Minnesota and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Short, you can compare the effects of market volatilities on Nuveen Minnesota and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Goldman Sachs.
Diversification Opportunities for Nuveen Minnesota and Goldman Sachs
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Goldman is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Short has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Goldman Sachs go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Goldman Sachs
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 2.28 times more return on investment than Goldman Sachs. However, Nuveen Minnesota is 2.28 times more volatile than Goldman Sachs Short. It trades about 0.02 of its potential returns per unit of risk. Goldman Sachs Short is currently generating about -0.1 per unit of risk. If you would invest 1,087 in Nuveen Minnesota Municipal on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Nuveen Minnesota Municipal or generate 0.28% 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. Goldman Sachs Short
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Goldman Sachs Short |
Nuveen Minnesota and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Goldman Sachs
The main advantage of trading using opposite Nuveen Minnesota and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Franklin Minnesota Tax Free | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt | Nuveen Minnesota vs. Columbia Minnesota Tax Exempt |
| Goldman Sachs vs. Eaton Vance Short | Goldman Sachs vs. Vanguard Short Term Treasury | Goldman Sachs vs. Vanguard Short Term Treasury | Goldman Sachs vs. Vanguard Short Term Federal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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