Correlation Between Tekla Life and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Tekla Life 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 Tekla Life 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 Tekla Life Sciences and Nuveen Amt Free Municipal, you can compare the effects of market volatilities on Tekla Life 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 Tekla Life with a short position of Nuveen Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Life and Nuveen Amt-free.
Diversification Opportunities for Tekla Life and Nuveen Amt-free
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tekla and Nuveen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Life Sciences 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 Tekla Life 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 Tekla Life Sciences 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 Tekla Life i.e., Tekla Life and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Tekla Life and Nuveen Amt-free
Considering the 90-day investment horizon Tekla Life Sciences is expected to generate 2.43 times more return on investment than Nuveen Amt-free. However, Tekla Life is 2.43 times more volatile than Nuveen Amt Free Municipal. It trades about 0.06 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,236 in Tekla Life Sciences on August 27, 2024 and sell it today you would earn a total of 143.00 from holding Tekla Life Sciences or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Life Sciences vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Tekla Life Sciences |
| Nuveen Amt Free |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tekla Life and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Life and Nuveen Amt-free
The main advantage of trading using opposite Tekla Life and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Life 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.| Tekla Life vs. Tekla World Healthcare | Tekla Life vs. Tekla Healthcare Opportunities | Tekla Life vs. Royce Value Closed | Tekla Life vs. John Hancock Financial |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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