Correlation Between Investcorp Credit and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Investcorp Credit and Nuveen California 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 Investcorp Credit and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investcorp Credit Management and Nuveen California Select, you can compare the effects of market volatilities on Investcorp Credit and Nuveen California 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 Investcorp Credit with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investcorp Credit and Nuveen California.
Diversification Opportunities for Investcorp Credit and Nuveen California
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investcorp and Nuveen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Investcorp Credit Management and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select and Investcorp Credit 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 Investcorp Credit Management are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of Investcorp Credit i.e., Investcorp Credit and Nuveen California go up and down completely randomly.
Pair Corralation between Investcorp Credit and Nuveen California
Given the investment horizon of 90 days Investcorp Credit Management is expected to generate 1.2 times more return on investment than Nuveen California. However, Investcorp Credit is 1.2 times more volatile than Nuveen California Select. It trades about 0.07 of its potential returns per unit of risk. Nuveen California Select is currently generating about -0.02 per unit of risk. If you would invest 305.00 in Investcorp Credit Management on October 24, 2024 and sell it today you would earn a total of 2.00 from holding Investcorp Credit Management or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Investcorp Credit Management vs. Nuveen California Select
Performance |
| Timeline |
| Investcorp Credit |
| Nuveen California Select |
Investcorp Credit and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investcorp Credit and Nuveen California
The main advantage of trading using opposite Investcorp Credit and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investcorp Credit position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade | Nuveen California vs. Federated Premier Municipal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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