Correlation Between Nuveen Minnesota and 1290 Retirement
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and 1290 Retirement 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 1290 Retirement 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 1290 Retirement 2045, you can compare the effects of market volatilities on Nuveen Minnesota and 1290 Retirement 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 1290 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and 1290 Retirement.
Diversification Opportunities for Nuveen Minnesota and 1290 Retirement
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and 1290 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and 1290 Retirement 2045 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Retirement 2045 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 1290 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Retirement 2045 has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and 1290 Retirement go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and 1290 Retirement
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.51 times more return on investment than 1290 Retirement. However, Nuveen Minnesota Municipal is 1.94 times less risky than 1290 Retirement. It trades about 0.42 of its potential returns per unit of risk. 1290 Retirement 2045 is currently generating about 0.13 per unit of risk. If you would invest 1,076 in Nuveen Minnesota Municipal on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Nuveen Minnesota Municipal or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. 1290 Retirement 2045
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| 1290 Retirement 2045 |
Nuveen Minnesota and 1290 Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and 1290 Retirement
The main advantage of trading using opposite Nuveen Minnesota and 1290 Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, 1290 Retirement 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 1290 Retirement will offset losses from the drop in 1290 Retirement'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 |
| 1290 Retirement vs. 1290 Funds | 1290 Retirement vs. 1290 Essex Small | 1290 Retirement vs. 1290 Funds | 1290 Retirement vs. 1290 Smartbeta Equity |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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