Correlation Between Nuveen Minnesota and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Equity Index, you can compare the effects of market volatilities on Nuveen Minnesota and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Tiaa Cref.
Diversification Opportunities for Nuveen Minnesota and Tiaa Cref
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Tiaa is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Tiaa Cref Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Equity 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Equity has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Tiaa Cref go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Tiaa Cref
Assuming the 90 days horizon Nuveen Minnesota is expected to generate 5.31 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Nuveen Minnesota Municipal is 3.5 times less risky than Tiaa Cref. It trades about 0.08 of its potential returns per unit of risk. Tiaa Cref Equity Index is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,725 in Tiaa Cref Equity Index on September 15, 2024 and sell it today you would earn a total of 1,595 from holding Tiaa Cref Equity Index or generate 58.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Tiaa Cref Equity Index
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Tiaa Cref Equity |
Nuveen Minnesota and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Tiaa Cref
The main advantage of trading using opposite Nuveen Minnesota and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Nuveen Minnesota vs. Ab Government Exchange | Nuveen Minnesota vs. John Hancock Money | Nuveen Minnesota vs. Edward Jones Money | Nuveen Minnesota vs. Blackrock Exchange Portfolio |
| Tiaa Cref vs. Bbh Intermediate Municipal | Tiaa Cref vs. Morningstar Municipal Bond | Tiaa Cref vs. Nuveen Minnesota Municipal | Tiaa Cref vs. Ishares Municipal Bond |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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