Correlation Between Nuveen Minnesota and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Sterling Capital 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 Sterling Capital 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 Sterling Capital Behavioral, you can compare the effects of market volatilities on Nuveen Minnesota and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Sterling Capital.
Diversification Opportunities for Nuveen Minnesota and Sterling Capital
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Sterling is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Beh has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Sterling Capital go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Sterling Capital
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.36 times more return on investment than Sterling Capital. However, Nuveen Minnesota Municipal is 2.75 times less risky than Sterling Capital. It trades about 0.1 of its potential returns per unit of risk. Sterling Capital Behavioral is currently generating about -0.07 per unit of risk. If you would invest 1,078 in Nuveen Minnesota Municipal on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Nuveen Minnesota Municipal or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Sterling Capital Behavioral
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Sterling Capital Beh |
Nuveen Minnesota and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Sterling Capital
The main advantage of trading using opposite Nuveen Minnesota and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Nuveen Minnesota vs. Great West Goldman Sachs | Nuveen Minnesota vs. Goldman Sachs Clean | Nuveen Minnesota vs. Europac Gold Fund | Nuveen Minnesota vs. Invesco Gold Special |
| Sterling Capital vs. Advent Claymore Convertible | Sterling Capital vs. Rationalpier 88 Convertible | Sterling Capital vs. Absolute Convertible Arbitrage | Sterling Capital vs. Putnam Convertible Incm Gwth |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |