Correlation Between Nuveen Floating and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both Nuveen Floating and Nuveen Core 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 Floating and Nuveen Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Floating Rate and Nuveen Core Equity, you can compare the effects of market volatilities on Nuveen Floating and Nuveen Core 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 Floating with a short position of Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Nuveen Core.
Diversification Opportunities for Nuveen Floating and Nuveen Core
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and Nuveen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Floating Rate and Nuveen Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Equity and Nuveen Floating 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 Floating Rate are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Equity has no effect on the direction of Nuveen Floating i.e., Nuveen Floating and Nuveen Core go up and down completely randomly.
Pair Corralation between Nuveen Floating and Nuveen Core
Considering the 90-day investment horizon Nuveen Floating is expected to generate 2.92 times less return on investment than Nuveen Core. But when comparing it to its historical volatility, Nuveen Floating Rate is 1.21 times less risky than Nuveen Core. It trades about 0.03 of its potential returns per unit of risk. Nuveen Core Equity is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,166 in Nuveen Core Equity on August 28, 2024 and sell it today you would earn a total of 391.00 from holding Nuveen Core Equity or generate 33.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.72% |
| Values | Daily Returns |
Nuveen Floating Rate vs. Nuveen Core Equity
Performance |
| Timeline |
| Nuveen Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Core Equity |
Nuveen Floating and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Floating and Nuveen Core
The main advantage of trading using opposite Nuveen Floating and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Floating position performs unexpectedly, Nuveen Core 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 Nuveen Core will offset losses from the drop in Nuveen Core's long position.| Nuveen Floating vs. Nuveen Floating Rate | Nuveen Floating vs. Blackrock Muni Intermediate | Nuveen Floating vs. Eaton Vance Senior | Nuveen Floating vs. Blackrock Floating Rate |
| Nuveen Core vs. Tri Continental Closed | Nuveen Core vs. SRH Total Return | Nuveen Core vs. Putnam Municipal Opportunities | Nuveen Core vs. Tortoise Energy Independence |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |