Correlation Between Eagle Capital and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Nuveen Amt-free 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 Amt-free 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 Amt Free Municipal, you can compare the effects of market volatilities on Eagle Capital and Nuveen Amt-free 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 Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Nuveen Amt-free.
Diversification Opportunities for Eagle Capital and Nuveen Amt-free
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Nuveen is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Eagle Capital i.e., Eagle Capital and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Eagle Capital and Nuveen Amt-free
Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 2.3 times more return on investment than Nuveen Amt-free. However, Eagle Capital is 2.3 times more volatile than Nuveen Amt Free Municipal. It trades about 0.18 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.04 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Growth vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Eagle Capital Growth |
| Nuveen Amt Free |
Eagle Capital and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Nuveen Amt-free
The main advantage of trading using opposite Eagle Capital and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free'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 Amt-free vs. Nuveen New York | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Pimco New York | Nuveen Amt-free vs. Nuveen Municipalome |
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 CEOs Directory module to screen CEOs from public companies around the world.
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