Correlation Between Nuveen Global and Investor
Can any of the company-specific risk be diversified away by investing in both Nuveen Global and Investor 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 Investor 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 Investor AB ser, you can compare the effects of market volatilities on Nuveen Global and Investor 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 Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Global and Investor.
Diversification Opportunities for Nuveen Global and Investor
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and Investor is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Global High and Investor AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investor AB ser 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 Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investor AB ser has no effect on the direction of Nuveen Global i.e., Nuveen Global and Investor go up and down completely randomly.
Pair Corralation between Nuveen Global and Investor
Considering the 90-day investment horizon Nuveen Global High is expected to generate 0.28 times more return on investment than Investor. However, Nuveen Global High is 3.53 times less risky than Investor. It trades about 0.16 of its potential returns per unit of risk. Investor AB ser is currently generating about -0.03 per unit of risk. If you would invest 1,262 in Nuveen Global High on September 12, 2024 and sell it today you would earn a total of 70.00 from holding Nuveen Global High or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Global High vs. Investor AB ser
Performance |
| Timeline |
| Nuveen Global High |
| Investor AB ser |
Nuveen Global and Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Global and Investor
The main advantage of trading using opposite Nuveen Global and Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Global position performs unexpectedly, Investor 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 Investor will offset losses from the drop in Investor'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 |
| Investor vs. Guggenheim Strategic Opportunities | Investor vs. Pimco Dynamic Income | Investor vs. Rivernorth Opportunities | Investor 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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