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 Lifestyle Servative, 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
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Tiaa is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Tiaa Cref Lifestyle Servative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifestyle 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 Lifestyle 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 Municipal is expected to generate 0.59 times more return on investment than Tiaa Cref. However, Nuveen Minnesota Municipal is 1.7 times less risky than Tiaa Cref. It trades about 0.42 of its potential returns per unit of risk. Tiaa Cref Lifestyle Servative is currently generating about 0.1 per unit of risk. If you would invest 1,077 in Nuveen Minnesota Municipal on September 12, 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 | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Tiaa Cref Lifestyle Servative
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Tiaa Cref Lifestyle |
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. Leggmason Partners Institutional | Nuveen Minnesota vs. Rbb Fund | Nuveen Minnesota vs. T Rowe Price | Nuveen Minnesota vs. Materials Portfolio Fidelity |
| Tiaa Cref vs. Lsv Small Cap | Tiaa Cref vs. Amg River Road | Tiaa Cref vs. Heartland Value Plus | Tiaa Cref vs. Pace Smallmedium Value |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |