Correlation Between Nuveen High and New America
Can any of the company-specific risk be diversified away by investing in both Nuveen High and New America 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 New America 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 New America High, you can compare the effects of market volatilities on Nuveen High and New America 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 New America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and New America.
Diversification Opportunities for Nuveen High and New America
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and New is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Income and New America High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New America High 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 New America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New America High has no effect on the direction of Nuveen High i.e., Nuveen High and New America go up and down completely randomly.
Pair Corralation between Nuveen High and New America
Given the investment horizon of 90 days Nuveen High is expected to generate 2.23 times less return on investment than New America. But when comparing it to its historical volatility, Nuveen High Income is 2.04 times less risky than New America. It trades about 0.08 of its potential returns per unit of risk. New America High is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 605.00 in New America High on September 3, 2024 and sell it today you would earn a total of 225.00 from holding New America High or generate 37.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.91% |
| Values | Daily Returns |
Nuveen High Income vs. New America High
Performance |
| Timeline |
| Nuveen High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New America High |
Nuveen High and New America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and New America
The main advantage of trading using opposite Nuveen High and New America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High position performs unexpectedly, New America 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 New America will offset losses from the drop in New America'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 |
| New America vs. Pioneer Municipal High | New America vs. DWS Municipal Income | New America vs. RiverNorth Specialty Finance | New America vs. Putnam Managed 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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