Correlation Between Nuveen Minnesota and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Intermediate-term 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 Intermediate-term 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 Intermediate Term Bond Fund, you can compare the effects of market volatilities on Nuveen Minnesota and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Intermediate-term.
Diversification Opportunities for Nuveen Minnesota and Intermediate-term
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Intermediate-term is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Intermediate Term Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term Bond 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Bond has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Intermediate-term go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Intermediate-term
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.81 times more return on investment than Intermediate-term. However, Nuveen Minnesota Municipal is 1.23 times less risky than Intermediate-term. It trades about 0.02 of its potential returns per unit of risk. Intermediate Term Bond Fund is currently generating about -0.11 per unit of risk. If you would invest 1,084 in Nuveen Minnesota Municipal on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Nuveen Minnesota Municipal or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Intermediate Term Bond Fund
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Intermediate Term Bond |
Nuveen Minnesota and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Intermediate-term
The main advantage of trading using opposite Nuveen Minnesota and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Nuveen Minnesota vs. Ms Global Fixed | Nuveen Minnesota vs. Ab Global Bond | Nuveen Minnesota vs. Us Global Investors | Nuveen Minnesota vs. Ab Global Risk |
| Intermediate-term vs. Capital Growth Fund | Intermediate-term vs. Emerging Markets Fund | Intermediate-term vs. High Income Fund | Intermediate-term vs. International Fund International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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