Correlation Between Nuveen Mortgage and New America
Can any of the company-specific risk be diversified away by investing in both Nuveen Mortgage 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 Mortgage 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 Mortgage Opportunity and New America High, you can compare the effects of market volatilities on Nuveen Mortgage 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 Mortgage with a short position of New America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Mortgage and New America.
Diversification Opportunities for Nuveen Mortgage and New America
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and New is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Mortgage Opportunity 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 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 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 Mortgage i.e., Nuveen Mortgage and New America go up and down completely randomly.
Pair Corralation between Nuveen Mortgage and New America
Considering the 90-day investment horizon Nuveen Mortgage is expected to generate 1.25 times less return on investment than New America. In addition to that, Nuveen Mortgage is 1.17 times more volatile than New America High. It trades about 0.13 of its total potential returns per unit of risk. New America High is currently generating about 0.19 per unit of volatility. If you would invest 809.00 in New America High on August 27, 2024 and sell it today you would earn a total of 13.00 from holding New America High or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Mortgage Opportunity vs. New America High
Performance |
| Timeline |
| Nuveen Mortgage Oppo |
| New America High |
Nuveen Mortgage and New America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Mortgage and New America
The main advantage of trading using opposite Nuveen Mortgage and New America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Mortgage 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 Mortgage vs. Western Asset High | Nuveen Mortgage vs. Pioneer Municipal High | Nuveen Mortgage vs. The Gabelli Equity | Nuveen Mortgage vs. Eaton Vance National |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |