Correlation Between Nuveen Global and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen Global and CBH 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 Nuveen Global and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Global High and CBH, you can compare the effects of market volatilities on Nuveen Global and CBH 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 Nuveen Global with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Global and CBH.
Diversification Opportunities for Nuveen Global and CBH
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and CBH is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Global High and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen Global 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 Nuveen Global High are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Nuveen Global i.e., Nuveen Global and CBH go up and down completely randomly.
Pair Corralation between Nuveen Global and CBH
If you would invest 1,294 in Nuveen Global High on September 18, 2024 and sell it today you would earn a total of 8.00 from holding Nuveen Global High or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 9.52% |
| Values | Daily Returns |
Nuveen Global High vs. CBH
Performance |
| Timeline |
| Nuveen Global High |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Global and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Global and CBH
The main advantage of trading using opposite Nuveen Global and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Global position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Nuveen Global vs. Advent Claymore Convertible | Nuveen Global vs. Blackstone Gso Strategic | Nuveen Global vs. Western Asset Investment | Nuveen Global vs. Pioneer Floating Rate |
| CBH vs. Brookfield Real Assets | CBH vs. Guggenheim Strategic Opportunities | CBH vs. Cornerstone Strategic Return | CBH vs. Cornerstone Strategic Value |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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