Correlation Between Nuveen Minnesota and Thornburg International
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Thornburg International 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 Thornburg International 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 Thornburg International Value, you can compare the effects of market volatilities on Nuveen Minnesota and Thornburg International 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 Thornburg International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Thornburg International.
Diversification Opportunities for Nuveen Minnesota and Thornburg International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and Thornburg is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Thornburg International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg International 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 Thornburg International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg International has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Thornburg International go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Thornburg International
Assuming the 90 days horizon Nuveen Minnesota is expected to generate 2.25 times less return on investment than Thornburg International. But when comparing it to its historical volatility, Nuveen Minnesota Municipal is 3.2 times less risky than Thornburg International. It trades about 0.07 of its potential returns per unit of risk. Thornburg International Value is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,837 in Thornburg International Value on August 30, 2024 and sell it today you would earn a total of 338.00 from holding Thornburg International Value or generate 18.4% 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. Thornburg International Value
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Thornburg International |
Nuveen Minnesota and Thornburg International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Thornburg International
The main advantage of trading using opposite Nuveen Minnesota and Thornburg International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Thornburg International 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 Thornburg International will offset losses from the drop in Thornburg International's long position.| Nuveen Minnesota vs. Mutual Of America | Nuveen Minnesota vs. Victory Rs Partners | Nuveen Minnesota vs. Columbia Small Cap | Nuveen Minnesota vs. Heartland Value Plus |
| Thornburg International vs. Rbc Short Duration | Thornburg International vs. Aqr Long Short Equity | Thornburg International vs. Touchstone Ultra Short | Thornburg International vs. Angel Oak Ultrashort |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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