Correlation Between Nuveen Mortgage and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen Mortgage 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 Mortgage and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Mortgage Opportunity and CBH, you can compare the effects of market volatilities on Nuveen Mortgage 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 Mortgage with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Mortgage and CBH.
Diversification Opportunities for Nuveen Mortgage and CBH
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and CBH is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Mortgage Opportunity and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen Mortgage 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 Mortgage Opportunity 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 Mortgage i.e., Nuveen Mortgage and CBH go up and down completely randomly.
Pair Corralation between Nuveen Mortgage and CBH
If you would invest 1,790 in Nuveen Mortgage Opportunity on September 18, 2024 and sell it today you would earn a total of 41.00 from holding Nuveen Mortgage Opportunity or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 9.52% |
| Values | Daily Returns |
Nuveen Mortgage Opportunity vs. CBH
Performance |
| Timeline |
| Nuveen Mortgage Oppo |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Mortgage and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Mortgage and CBH
The main advantage of trading using opposite Nuveen Mortgage and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Mortgage 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 Mortgage vs. Brandywineglobal Globalome Opportunities | Nuveen Mortgage vs. RiverNorth Specialty Finance | Nuveen Mortgage vs. Western Asset Mortgage | Nuveen Mortgage vs. Stone Harbor Emerging |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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