Correlation Between Nuveen High and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen High 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 High and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen High Income and CBH, you can compare the effects of market volatilities on Nuveen High 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 High with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and CBH.
Diversification Opportunities for Nuveen High and CBH
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and CBH is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Income and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen High 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 High Income 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 High i.e., Nuveen High and CBH go up and down completely randomly.
Pair Corralation between Nuveen High and CBH
If you would invest 919.00 in CBH on August 28, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen High Income vs. CBH
Performance |
| Timeline |
| Nuveen High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen High and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and CBH
The main advantage of trading using opposite Nuveen High and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High 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 High vs. MFS Investment Grade | Nuveen High vs. Eaton Vance National | Nuveen High vs. Invesco High Income | Nuveen High vs. Nuveen California Select |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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