Correlation Between New America and Nuveen Senior
Can any of the company-specific risk be diversified away by investing in both New America and Nuveen Senior 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 New America and Nuveen Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New America High and Nuveen Senior Income, you can compare the effects of market volatilities on New America and Nuveen Senior 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 New America with a short position of Nuveen Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of New America and Nuveen Senior.
Diversification Opportunities for New America and Nuveen Senior
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Nuveen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding New America High and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income and New America 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 New America High are associated (or correlated) with Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of New America i.e., New America and Nuveen Senior go up and down completely randomly.
Pair Corralation between New America and Nuveen Senior
If you would invest 619.00 in New America High on September 1, 2024 and sell it today you would earn a total of 211.00 from holding New America High or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
New America High vs. Nuveen Senior Income
Performance |
| Timeline |
| New America High |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New America and Nuveen Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New America and Nuveen Senior
The main advantage of trading using opposite New America and Nuveen Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New America position performs unexpectedly, Nuveen Senior 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 Senior will offset losses from the drop in Nuveen Senior's long position.| New America vs. Pioneer Municipal High | New America vs. DWS Municipal Income | New America vs. RiverNorth Specialty Finance | New America vs. Putnam Managed Municipal |
| Nuveen Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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