Correlation Between Great Elm and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both Great Elm and Nuveen Core 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 Great Elm and Nuveen Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Elm Capital and Nuveen Core Plus, you can compare the effects of market volatilities on Great Elm and Nuveen Core 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 Great Elm with a short position of Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Elm and Nuveen Core.
Diversification Opportunities for Great Elm and Nuveen Core
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great and Nuveen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Great Elm Capital and Nuveen Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Plus and Great Elm 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 Great Elm Capital are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Plus has no effect on the direction of Great Elm i.e., Great Elm and Nuveen Core go up and down completely randomly.
Pair Corralation between Great Elm and Nuveen Core
Given the investment horizon of 90 days Great Elm Capital is expected to under-perform the Nuveen Core. In addition to that, Great Elm is 2.72 times more volatile than Nuveen Core Plus. It trades about -0.06 of its total potential returns per unit of risk. Nuveen Core Plus is currently generating about 0.16 per unit of volatility. If you would invest 1,049 in Nuveen Core Plus on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Nuveen Core Plus or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Elm Capital vs. Nuveen Core Plus
Performance |
| Timeline |
| Great Elm Capital |
| Nuveen Core Plus |
Great Elm and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Elm and Nuveen Core
The main advantage of trading using opposite Great Elm and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Elm position performs unexpectedly, Nuveen Core 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 Core will offset losses from the drop in Nuveen Core's long position.| Great Elm vs. John Hancock Investors | Great Elm vs. MFS Charter Income | Great Elm vs. GCM Grosvenor | Great Elm vs. BlackRock ESG Capital |
| Nuveen Core vs. Us Global Nanospace | Nuveen Core vs. Safeplus International Holdings | Nuveen Core vs. Nanobac Pharmaceuticals Incorporated | Nuveen Core vs. MidCap Financial Investment |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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