Correlation Between Chn Strs and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Chn Strs and Nebraska Municipal 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 Chn Strs and Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chn Strs Insti and Nebraska Municipal Fund, you can compare the effects of market volatilities on Chn Strs and Nebraska Municipal 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 Chn Strs with a short position of Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chn Strs and Nebraska Municipal.
Diversification Opportunities for Chn Strs and Nebraska Municipal
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chn and Nebraska is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chn Strs Insti and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal and Chn Strs 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 Chn Strs Insti are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Chn Strs i.e., Chn Strs and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Chn Strs and Nebraska Municipal
Assuming the 90 days horizon Chn Strs Insti is expected to generate 2.33 times more return on investment than Nebraska Municipal. However, Chn Strs is 2.33 times more volatile than Nebraska Municipal Fund. It trades about 0.16 of its potential returns per unit of risk. Nebraska Municipal Fund is currently generating about 0.07 per unit of risk. If you would invest 900.00 in Chn Strs Insti on November 27, 2024 and sell it today you would earn a total of 17.00 from holding Chn Strs Insti or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chn Strs Insti vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Chn Strs Insti |
| Nebraska Municipal |
Chn Strs and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chn Strs and Nebraska Municipal
The main advantage of trading using opposite Chn Strs and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chn Strs position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Chn Strs vs. Upright Assets Allocation | Chn Strs vs. Franklin Moderate Allocation | Chn Strs vs. Tax Managed Large Cap | Chn Strs vs. Calvert Moderate Allocation |
| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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