Correlation Between Ab Global and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Ab Global and Nuveen Minnesota 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 Ab Global and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global E and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Ab Global and Nuveen Minnesota 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 Ab Global with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Nuveen Minnesota.
Diversification Opportunities for Ab Global and Nuveen Minnesota
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GCEAX and Nuveen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global E and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Ab Global 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 Ab Global E are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Ab Global i.e., Ab Global and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Ab Global and Nuveen Minnesota
Assuming the 90 days horizon Ab Global E is expected to under-perform the Nuveen Minnesota. In addition to that, Ab Global is 2.26 times more volatile than Nuveen Minnesota Municipal. It trades about -0.02 of its total potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.14 per unit of volatility. If you would invest 1,076 in Nuveen Minnesota Municipal on August 28, 2024 and sell it today you would earn a total of 10.00 from holding Nuveen Minnesota Municipal or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Global E vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Ab Global E |
| Nuveen Minnesota Mun |
Ab Global and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Nuveen Minnesota
The main advantage of trading using opposite Ab Global and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Ab Global vs. Tekla Healthcare Opportunities | Ab Global vs. Baillie Gifford Health | Ab Global vs. Eventide Healthcare Life | Ab Global vs. Fidelity Advisor Health |
| Nuveen Minnesota vs. Eic Value Fund | Nuveen Minnesota vs. Archer Balanced Fund | Nuveen Minnesota vs. Qs Growth Fund | Nuveen Minnesota vs. Center St Mlp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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