Correlation Between Nuveen Massachusetts and Cullen International
Can any of the company-specific risk be diversified away by investing in both Nuveen Massachusetts and Cullen International 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 Massachusetts and Cullen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Massachusetts Municipal and Cullen International High, you can compare the effects of market volatilities on Nuveen Massachusetts and Cullen International 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 Massachusetts with a short position of Cullen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Massachusetts and Cullen International.
Diversification Opportunities for Nuveen Massachusetts and Cullen International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Cullen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Massachusetts Municipal and Cullen International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen International High and Nuveen Massachusetts 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 Massachusetts Municipal are associated (or correlated) with Cullen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen International High has no effect on the direction of Nuveen Massachusetts i.e., Nuveen Massachusetts and Cullen International go up and down completely randomly.
Pair Corralation between Nuveen Massachusetts and Cullen International
Assuming the 90 days horizon Nuveen Massachusetts is expected to generate 2.78 times less return on investment than Cullen International. But when comparing it to its historical volatility, Nuveen Massachusetts Municipal is 2.99 times less risky than Cullen International. It trades about 0.08 of its potential returns per unit of risk. Cullen International High is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Cullen International High on September 2, 2024 and sell it today you would earn a total of 213.00 from holding Cullen International High or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Massachusetts Municipal vs. Cullen International High
Performance |
| Timeline |
| Nuveen Massachusetts |
| Cullen International High |
Nuveen Massachusetts and Cullen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Massachusetts and Cullen International
The main advantage of trading using opposite Nuveen Massachusetts and Cullen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Massachusetts position performs unexpectedly, Cullen International 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 Cullen International will offset losses from the drop in Cullen International's long position.| Nuveen Massachusetts vs. Mid Cap Value Profund | Nuveen Massachusetts vs. Ultramid Cap Profund Ultramid Cap | Nuveen Massachusetts vs. American Century Etf | Nuveen Massachusetts vs. Heartland Value Plus |
| Cullen International vs. Cullen Small Cap | Cullen International vs. Cullen Small Cap | Cullen International vs. Cullen Small Cap | Cullen International vs. Cullen Value Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |