Correlation Between Nuveen California and Firsthand Technology
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Firsthand Technology 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 California and Firsthand Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen California Municipal and Firsthand Technology Opportunities, you can compare the effects of market volatilities on Nuveen California and Firsthand Technology 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 California with a short position of Firsthand Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Firsthand Technology.
Diversification Opportunities for Nuveen California and Firsthand Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Firsthand is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Municipal and Firsthand Technology Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firsthand Technology and Nuveen California 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 California Municipal are associated (or correlated) with Firsthand Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firsthand Technology has no effect on the direction of Nuveen California i.e., Nuveen California and Firsthand Technology go up and down completely randomly.
Pair Corralation between Nuveen California and Firsthand Technology
Assuming the 90 days horizon Nuveen California Municipal is expected to under-perform the Firsthand Technology. But the mutual fund apears to be less risky and, when comparing its historical volatility, Nuveen California Municipal is 7.22 times less risky than Firsthand Technology. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Firsthand Technology Opportunities is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 380.00 in Firsthand Technology Opportunities on November 3, 2024 and sell it today you would earn a total of 31.00 from holding Firsthand Technology Opportunities or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen California Municipal vs. Firsthand Technology Opportuni
Performance |
| Timeline |
| Nuveen California |
| Firsthand Technology |
Nuveen California and Firsthand Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Firsthand Technology
The main advantage of trading using opposite Nuveen California and Firsthand Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Firsthand Technology 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 Firsthand Technology will offset losses from the drop in Firsthand Technology's long position.| Nuveen California vs. Virtus High Yield | Nuveen California vs. Strategic Advisers Income | Nuveen California vs. Gmo High Yield | Nuveen California vs. City National Rochdale |
| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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