Correlation Between Nuveen New and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Nuveen New and Munivest Fund 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 Munivest Fund 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 Munivest Fund, you can compare the effects of market volatilities on Nuveen New and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Munivest Fund.
Diversification Opportunities for Nuveen New and Munivest Fund
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Munivest is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New York and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Nuveen New i.e., Nuveen New and Munivest Fund go up and down completely randomly.
Pair Corralation between Nuveen New and Munivest Fund
Considering the 90-day investment horizon Nuveen New York is expected to generate 0.94 times more return on investment than Munivest Fund. However, Nuveen New York is 1.06 times less risky than Munivest Fund. It trades about 0.06 of its potential returns per unit of risk. Munivest Fund is currently generating about 0.06 per unit of risk. If you would invest 968.00 in Nuveen New York on August 30, 2024 and sell it today you would earn a total of 189.00 from holding Nuveen New York or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New York vs. Munivest Fund
Performance |
| Timeline |
| Nuveen New York |
| Munivest Fund |
Nuveen New and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and Munivest Fund
The main advantage of trading using opposite Nuveen New and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.| Nuveen New vs. MFS Investment Grade | Nuveen New vs. Invesco High Income | Nuveen New vs. Eaton Vance National | Nuveen New vs. Federated Premier Municipal |
| Munivest Fund vs. Gabelli Global Small | Munivest Fund vs. MFS Investment Grade | Munivest Fund vs. Eaton Vance National | Munivest Fund vs. GAMCO Natural Resources |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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