Correlation Between Jacob Small and Nuveen High
Can any of the company-specific risk be diversified away by investing in both Jacob Small and Nuveen High 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 Jacob Small and Nuveen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Small Cap and Nuveen High Income, you can compare the effects of market volatilities on Jacob Small and Nuveen High 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 Jacob Small with a short position of Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Small and Nuveen High.
Diversification Opportunities for Jacob Small and Nuveen High
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jacob and NUVEEN is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Small Cap and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Income and Jacob Small 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 Jacob Small Cap are associated (or correlated) with Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Income has no effect on the direction of Jacob Small i.e., Jacob Small and Nuveen High go up and down completely randomly.
Pair Corralation between Jacob Small and Nuveen High
Assuming the 90 days horizon Jacob Small Cap is expected to generate 11.85 times more return on investment than Nuveen High. However, Jacob Small is 11.85 times more volatile than Nuveen High Income. It trades about 0.32 of its potential returns per unit of risk. Nuveen High Income is currently generating about 0.35 per unit of risk. If you would invest 1,944 in Jacob Small Cap on September 4, 2024 and sell it today you would earn a total of 291.00 from holding Jacob Small Cap or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacob Small Cap vs. Nuveen High Income
Performance |
| Timeline |
| Jacob Small Cap |
| Nuveen High Income |
Jacob Small and Nuveen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Small and Nuveen High
The main advantage of trading using opposite Jacob Small and Nuveen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Small position performs unexpectedly, Nuveen High 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 High will offset losses from the drop in Nuveen High's long position.| Jacob Small vs. Eventide Healthcare Life | Jacob Small vs. Deutsche Health And | Jacob Small vs. Blackrock Health Sciences | Jacob Small vs. Health Biotchnology Portfolio |
| Nuveen High vs. Nuveen Small Cap | Nuveen High vs. Nuveen Real Estate | Nuveen High vs. Nuveen Real Estate | Nuveen High vs. Nuveen Preferred Securities |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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