Correlation Between Nuveen Minnesota and Russell 2000
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Russell 2000 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 Russell 2000 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 Russell 2000 2x, you can compare the effects of market volatilities on Nuveen Minnesota and Russell 2000 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 Russell 2000. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Russell 2000.
Diversification Opportunities for Nuveen Minnesota and Russell 2000
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and Russell is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Russell 2000 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Russell 2000 2x 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 Russell 2000. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell 2000 2x has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Russell 2000 go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Russell 2000
Assuming the 90 days horizon Nuveen Minnesota is expected to generate 15.2 times less return on investment than Russell 2000. But when comparing it to its historical volatility, Nuveen Minnesota Municipal is 10.64 times less risky than Russell 2000. It trades about 0.2 of its potential returns per unit of risk. Russell 2000 2x is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 16,731 in Russell 2000 2x on September 4, 2024 and sell it today you would earn a total of 3,249 from holding Russell 2000 2x or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Russell 2000 2x
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Russell 2000 2x |
Nuveen Minnesota and Russell 2000 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Russell 2000
The main advantage of trading using opposite Nuveen Minnesota and Russell 2000 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Russell 2000 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 Russell 2000 will offset losses from the drop in Russell 2000's long position.| Nuveen Minnesota vs. Rational Strategic Allocation | Nuveen Minnesota vs. Scharf Global Opportunity | Nuveen Minnesota vs. Mirova Global Green | Nuveen Minnesota vs. Qs Global Equity |
| Russell 2000 vs. Western Asset Municipal | Russell 2000 vs. Falcon Focus Scv | Russell 2000 vs. Leggmason Partners Institutional | Russell 2000 vs. Acm Dynamic Opportunity |
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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