Correlation Between KS Bancorp and Nuveen California
Can any of the company-specific risk be diversified away by investing in both KS Bancorp and Nuveen California 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 KS Bancorp and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KS Bancorp and Nuveen California Select, you can compare the effects of market volatilities on KS Bancorp and Nuveen California 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 KS Bancorp with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of KS Bancorp and Nuveen California.
Diversification Opportunities for KS Bancorp and Nuveen California
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KSBI and Nuveen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding KS Bancorp and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select and KS Bancorp 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 KS Bancorp are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of KS Bancorp i.e., KS Bancorp and Nuveen California go up and down completely randomly.
Pair Corralation between KS Bancorp and Nuveen California
Given the investment horizon of 90 days KS Bancorp is expected to generate 1.34 times more return on investment than Nuveen California. However, KS Bancorp is 1.34 times more volatile than Nuveen California Select. It trades about 0.44 of its potential returns per unit of risk. Nuveen California Select is currently generating about 0.05 per unit of risk. If you would invest 4,949 in KS Bancorp on November 28, 2024 and sell it today you would earn a total of 251.00 from holding KS Bancorp or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
KS Bancorp vs. Nuveen California Select
Performance |
| Timeline |
| KS Bancorp |
| Nuveen California Select |
KS Bancorp and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KS Bancorp and Nuveen California
The main advantage of trading using opposite KS Bancorp and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KS Bancorp position performs unexpectedly, Nuveen California 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 California will offset losses from the drop in Nuveen California's long position.| KS Bancorp vs. Carter Bank and | KS Bancorp vs. Blue Ridge Bankshares | KS Bancorp vs. First Bancorp | KS Bancorp vs. Truist Financial Corp |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade | Nuveen California vs. Federated Premier 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |