Correlation Between Nuveen Minnesota and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Nuveen Winslow 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 Nuveen Winslow 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 Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Nuveen Minnesota and Nuveen Winslow 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 Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Nuveen Winslow.
Diversification Opportunities for Nuveen Minnesota and Nuveen Winslow
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Nuveen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large 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 Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Nuveen Winslow
Assuming the 90 days horizon Nuveen Minnesota is expected to generate 4.08 times less return on investment than Nuveen Winslow. But when comparing it to its historical volatility, Nuveen Minnesota Municipal is 3.11 times less risky than Nuveen Winslow. It trades about 0.22 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 6,532 in Nuveen Winslow Large Cap on September 1, 2024 and sell it today you would earn a total of 422.00 from holding Nuveen Winslow Large Cap or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Nuveen Winslow Large |
Nuveen Minnesota and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Nuveen Winslow
The main advantage of trading using opposite Nuveen Minnesota and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Nuveen Winslow 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 Winslow will offset losses from the drop in Nuveen Winslow's long position.| Nuveen Minnesota vs. Energy Basic Materials | Nuveen Minnesota vs. Clearbridge Energy Mlp | Nuveen Minnesota vs. Short Oil Gas | Nuveen Minnesota vs. Hennessy Bp Energy |
| Nuveen Winslow vs. Nuveen Arizona Municipal | Nuveen Winslow vs. Old Westbury Municipal | Nuveen Winslow vs. Alliancebernstein National Municipal | Nuveen Winslow vs. Nuveen Minnesota 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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