Correlation Between Nuveen Mortgage and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Nuveen Mortgage and Cohen Steers 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 Cohen Steers 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 Cohen Steers Tax Advantaged, you can compare the effects of market volatilities on Nuveen Mortgage and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Mortgage and Cohen Steers.
Diversification Opportunities for Nuveen Mortgage and Cohen Steers
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Cohen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Mortgage Opportunity and Cohen Steers Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Tax 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Tax has no effect on the direction of Nuveen Mortgage i.e., Nuveen Mortgage and Cohen Steers go up and down completely randomly.
Pair Corralation between Nuveen Mortgage and Cohen Steers
Considering the 90-day investment horizon Nuveen Mortgage Opportunity is expected to generate 0.89 times more return on investment than Cohen Steers. However, Nuveen Mortgage Opportunity is 1.12 times less risky than Cohen Steers. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Tax Advantaged is currently generating about 0.1 per unit of risk. If you would invest 1,373 in Nuveen Mortgage Opportunity on August 31, 2024 and sell it today you would earn a total of 465.00 from holding Nuveen Mortgage Opportunity or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Mortgage Opportunity vs. Cohen Steers Tax Advantaged
Performance |
| Timeline |
| Nuveen Mortgage Oppo |
| Cohen Steers Tax |
Nuveen Mortgage and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Mortgage and Cohen Steers
The main advantage of trading using opposite Nuveen Mortgage and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Mortgage position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Blackrock Muni Intermediate | Cohen Steers vs. Nuveen Dynamic Municipal | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. DWS Municipal 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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