Correlation Between Nuveen Minnesota and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Icon Financial 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 Icon Financial 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 Icon Financial Fund, you can compare the effects of market volatilities on Nuveen Minnesota and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Icon Financial.
Diversification Opportunities for Nuveen Minnesota and Icon Financial
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Icon is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Icon Financial go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Icon Financial
Assuming the 90 days horizon Nuveen Minnesota is expected to generate 6.01 times less return on investment than Icon Financial. But when comparing it to its historical volatility, Nuveen Minnesota Municipal is 4.23 times less risky than Icon Financial. It trades about 0.14 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,091 in Icon Financial Fund on August 28, 2024 and sell it today you would earn a total of 61.00 from holding Icon Financial Fund or generate 5.59% 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. Icon Financial Fund
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Icon Financial |
Nuveen Minnesota and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Icon Financial
The main advantage of trading using opposite Nuveen Minnesota and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Nuveen Minnesota vs. Ms Global Fixed | Nuveen Minnesota vs. Ab Global Bond | Nuveen Minnesota vs. Us Global Investors | Nuveen Minnesota vs. Ab Global Risk |
| Icon Financial vs. Loomis Sayles Inflation | Icon Financial vs. Arrow Managed Futures | Icon Financial vs. Guidepath Managed Futures | Icon Financial vs. Western Asset Inflation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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