Correlation Between Northern Lights and Nuveen Sustainable
Can any of the company-specific risk be diversified away by investing in both Northern Lights and Nuveen Sustainable 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 Northern Lights and Nuveen Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lights and Nuveen Sustainable Core, you can compare the effects of market volatilities on Northern Lights and Nuveen Sustainable 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 Northern Lights with a short position of Nuveen Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lights and Nuveen Sustainable.
Diversification Opportunities for Northern Lights and Nuveen Sustainable
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northern and Nuveen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lights and Nuveen Sustainable Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Sustainable Core and Northern Lights 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 Northern Lights are associated (or correlated) with Nuveen Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Sustainable Core has no effect on the direction of Northern Lights i.e., Northern Lights and Nuveen Sustainable go up and down completely randomly.
Pair Corralation between Northern Lights and Nuveen Sustainable
Given the investment horizon of 90 days Northern Lights is expected to generate 1.06 times less return on investment than Nuveen Sustainable. In addition to that, Northern Lights is 1.02 times more volatile than Nuveen Sustainable Core. It trades about 0.1 of its total potential returns per unit of risk. Nuveen Sustainable Core is currently generating about 0.11 per unit of volatility. If you would invest 2,516 in Nuveen Sustainable Core on September 3, 2024 and sell it today you would earn a total of 436.00 from holding Nuveen Sustainable Core or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 37.98% |
| Values | Daily Returns |
Northern Lights vs. Nuveen Sustainable Core
Performance |
| Timeline |
| Northern Lights |
| Nuveen Sustainable Core |
Northern Lights and Nuveen Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lights and Nuveen Sustainable
The main advantage of trading using opposite Northern Lights and Nuveen Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lights position performs unexpectedly, Nuveen Sustainable 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 Sustainable will offset losses from the drop in Nuveen Sustainable's long position.| Northern Lights vs. Sterling Capital Focus | Northern Lights vs. Roundhill ETF Trust | Northern Lights vs. Northern Lights | Northern Lights vs. First Trust Exchange Traded |
| Nuveen Sustainable vs. FT Vest Equity | Nuveen Sustainable vs. Northern Lights | Nuveen Sustainable vs. Dimensional International High | Nuveen Sustainable vs. JPMorgan Fundamental Data |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |