Correlation Between Nuveen Minnesota and China Region
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and China Region 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 China Region 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 China Region Fund, you can compare the effects of market volatilities on Nuveen Minnesota and China Region 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 China Region. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and China Region.
Diversification Opportunities for Nuveen Minnesota and China Region
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and China is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and China Region Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Region 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 China Region. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Region has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and China Region go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and China Region
If you would invest 1,074 in Nuveen Minnesota Municipal on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Nuveen Minnesota Municipal or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. China Region Fund
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Minnesota and China Region Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and China Region
The main advantage of trading using opposite Nuveen Minnesota and China Region positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, China Region 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 China Region will offset losses from the drop in China Region's long position.| Nuveen Minnesota vs. Energy Basic Materials | Nuveen Minnesota vs. Clearbridge Energy Mlp | Nuveen Minnesota vs. Short Oil Gas | Nuveen Minnesota vs. Hennessy Bp Energy |
| China Region vs. Mesirow Financial Small | China Region vs. Icon Financial Fund | China Region vs. Davis Financial Fund | China Region vs. Transamerica Financial Life |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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