Correlation Between SPDR Nuveen and FRN
Can any of the company-specific risk be diversified away by investing in both SPDR Nuveen and FRN 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 SPDR Nuveen and FRN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Nuveen Municipal and FRN, you can compare the effects of market volatilities on SPDR Nuveen and FRN 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 SPDR Nuveen with a short position of FRN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Nuveen and FRN.
Diversification Opportunities for SPDR Nuveen and FRN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and FRN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Nuveen Municipal and FRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRN and SPDR Nuveen 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 SPDR Nuveen Municipal are associated (or correlated) with FRN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRN has no effect on the direction of SPDR Nuveen i.e., SPDR Nuveen and FRN go up and down completely randomly.
Pair Corralation between SPDR Nuveen and FRN
If you would invest 2,668 in SPDR Nuveen Municipal on September 14, 2024 and sell it today you would earn a total of 111.00 from holding SPDR Nuveen Municipal or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Nuveen Municipal vs. FRN
Performance |
| Timeline |
| SPDR Nuveen Municipal |
| FRN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Nuveen and FRN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Nuveen and FRN
The main advantage of trading using opposite SPDR Nuveen and FRN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Nuveen position performs unexpectedly, FRN 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 FRN will offset losses from the drop in FRN's long position.| SPDR Nuveen vs. Mountain Commerce Bancorp | SPDR Nuveen vs. Magyar Bancorp | SPDR Nuveen vs. Nortech Systems Incorporated |
| FRN vs. FT Vest Equity | FRN vs. Zillow Group Class | FRN vs. Northern Lights | FRN vs. VanEck Vectors Moodys |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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