Correlation Between Nuveen Dynamic and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Nuveen Dynamic and Cohen Steers 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 Dynamic and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Dynamic Municipal and Cohen Steers Tax Advantaged, you can compare the effects of market volatilities on Nuveen Dynamic and Cohen Steers 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 Dynamic with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Dynamic and Cohen Steers.
Diversification Opportunities for Nuveen Dynamic and Cohen Steers
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuveen and Cohen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Dynamic Municipal and Cohen Steers Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Tax and Nuveen Dynamic 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 Dynamic Municipal are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Tax has no effect on the direction of Nuveen Dynamic i.e., Nuveen Dynamic and Cohen Steers go up and down completely randomly.
Pair Corralation between Nuveen Dynamic and Cohen Steers
Given the investment horizon of 90 days Nuveen Dynamic is expected to generate 1.53 times less return on investment than Cohen Steers. In addition to that, Nuveen Dynamic is 1.06 times more volatile than Cohen Steers Tax Advantaged. It trades about 0.03 of its total potential returns per unit of risk. Cohen Steers Tax Advantaged is currently generating about 0.06 per unit of volatility. If you would invest 1,591 in Cohen Steers Tax Advantaged on August 31, 2024 and sell it today you would earn a total of 424.00 from holding Cohen Steers Tax Advantaged or generate 26.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Dynamic Municipal vs. Cohen Steers Tax Advantaged
Performance |
| Timeline |
| Nuveen Dynamic Municipal |
| Cohen Steers Tax |
Nuveen Dynamic and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Dynamic and Cohen Steers
The main advantage of trading using opposite Nuveen Dynamic and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Dynamic position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Nuveen Dynamic vs. Blackrock Muni Intermediate | Nuveen Dynamic vs. Blackrock Muniyield Quality | Nuveen Dynamic vs. DWS Municipal Income | Nuveen Dynamic vs. Blackrock Muniyield Quality |
| Cohen Steers vs. Blackrock Muni Intermediate | Cohen Steers vs. Nuveen Dynamic Municipal | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. DWS Municipal Income |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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