Correlation Between Nuveen High and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Nuveen High and Federated Premier 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 Federated Premier 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 Federated Premier Municipal, you can compare the effects of market volatilities on Nuveen High and Federated Premier 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 Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and Federated Premier.
Diversification Opportunities for Nuveen High and Federated Premier
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Federated is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Income and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier 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 Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Nuveen High i.e., Nuveen High and Federated Premier go up and down completely randomly.
Pair Corralation between Nuveen High and Federated Premier
If you would invest 939.00 in Nuveen High Income on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen High Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nuveen High Income vs. Federated Premier Municipal
Performance |
| Timeline |
| Nuveen High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Premier |
Nuveen High and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and Federated Premier
The main advantage of trading using opposite Nuveen High and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier'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 |
| Federated Premier vs. DTF Tax Free | Federated Premier vs. MFS High Yield | Federated Premier vs. MFS High Income | Federated Premier vs. John Hancock Income |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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