Correlation Between Eagle Capital and Nuveen Municipalome
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Nuveen Municipalome 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 Eagle Capital and Nuveen Municipalome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Capital Growth and Nuveen Municipalome, you can compare the effects of market volatilities on Eagle Capital and Nuveen Municipalome 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 Eagle Capital with a short position of Nuveen Municipalome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Nuveen Municipalome.
Diversification Opportunities for Eagle Capital and Nuveen Municipalome
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Nuveen is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Nuveen Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Municipalome and Eagle Capital 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 Eagle Capital Growth are associated (or correlated) with Nuveen Municipalome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Municipalome has no effect on the direction of Eagle Capital i.e., Eagle Capital and Nuveen Municipalome go up and down completely randomly.
Pair Corralation between Eagle Capital and Nuveen Municipalome
Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 3.5 times more return on investment than Nuveen Municipalome. However, Eagle Capital is 3.5 times more volatile than Nuveen Municipalome. It trades about 0.18 of its potential returns per unit of risk. Nuveen Municipalome is currently generating about -0.15 per unit of risk. If you would invest 982.00 in Eagle Capital Growth on August 28, 2024 and sell it today you would earn a total of 54.00 from holding Eagle Capital Growth or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Growth vs. Nuveen Municipalome
Performance |
| Timeline |
| Eagle Capital Growth |
| Nuveen Municipalome |
Eagle Capital and Nuveen Municipalome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Nuveen Municipalome
The main advantage of trading using opposite Eagle Capital and Nuveen Municipalome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Nuveen Municipalome 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 Municipalome will offset losses from the drop in Nuveen Municipalome's long position.| Eagle Capital vs. Eaton Vance New | Eagle Capital vs. Pimco New York | Eagle Capital vs. Nuveen Amt Free Municipal | Eagle Capital vs. Western Asset Municipal |
| Nuveen Municipalome vs. DTF Tax Free | Nuveen Municipalome vs. MFS High Yield | Nuveen Municipalome vs. MFS High Income | Nuveen Municipalome vs. John Hancock Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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