Correlation Between Nuveen Minnesota and Highland Merger
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Highland Merger 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 Highland Merger 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 Highland Merger Arbitrage, you can compare the effects of market volatilities on Nuveen Minnesota and Highland Merger 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 Highland Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Highland Merger.
Diversification Opportunities for Nuveen Minnesota and Highland Merger
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Highland is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Highland Merger Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Merger Arbitrage 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 Highland Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Merger Arbitrage has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Highland Merger go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Highland Merger
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 2.4 times more return on investment than Highland Merger. However, Nuveen Minnesota is 2.4 times more volatile than Highland Merger Arbitrage. It trades about 0.13 of its potential returns per unit of risk. Highland Merger Arbitrage is currently generating about 0.23 per unit of risk. If you would invest 1,064 in Nuveen Minnesota Municipal on December 11, 2024 and sell it today you would earn a total of 10.00 from holding Nuveen Minnesota Municipal or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Highland Merger Arbitrage
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Highland Merger Arbitrage |
Nuveen Minnesota and Highland Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Highland Merger
The main advantage of trading using opposite Nuveen Minnesota and Highland Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Highland Merger 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 Highland Merger will offset losses from the drop in Highland Merger's long position.| Nuveen Minnesota vs. Pace High Yield | Nuveen Minnesota vs. Siit High Yield | Nuveen Minnesota vs. Rbc Bluebay Global | Nuveen Minnesota vs. Oklahoma College Savings |
| Highland Merger vs. Growth Allocation Fund | Highland Merger vs. Franklin Moderate Allocation | Highland Merger vs. Touchstone Large Cap | Highland Merger vs. Wasatch Large 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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