Correlation Between Nuveen New and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen New and CBH 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 New and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen New York and CBH, you can compare the effects of market volatilities on Nuveen New and CBH 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 New with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and CBH.
Diversification Opportunities for Nuveen New and CBH
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and CBH is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New York and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen New 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 New York are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Nuveen New i.e., Nuveen New and CBH go up and down completely randomly.
Pair Corralation between Nuveen New and CBH
If you would invest 1,140 in Nuveen New York on November 2, 2024 and sell it today you would earn a total of 5.00 from holding Nuveen New York or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Nuveen New York vs. CBH
Performance |
| Timeline |
| Nuveen New York |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen New and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and CBH
The main advantage of trading using opposite Nuveen New and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Nuveen New vs. MFS Investment Grade | Nuveen New vs. Eaton Vance National | Nuveen New vs. Federated Premier Municipal | Nuveen New vs. Blackrock Muniholdings Closed |
| CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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