Correlation Between Nuveen Amt-free and Nuveen New
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt-free and Nuveen New 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 Amt-free and Nuveen New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Amt Free Municipal and Nuveen New York, you can compare the effects of market volatilities on Nuveen Amt-free and Nuveen New 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 Amt-free with a short position of Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt-free and Nuveen New.
Diversification Opportunities for Nuveen Amt-free and Nuveen New
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuveen and Nuveen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York and Nuveen Amt-free 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 Amt Free Municipal are associated (or correlated) with Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of Nuveen Amt-free i.e., Nuveen Amt-free and Nuveen New go up and down completely randomly.
Pair Corralation between Nuveen Amt-free and Nuveen New
Considering the 90-day investment horizon Nuveen Amt Free Municipal is expected to generate 1.04 times more return on investment than Nuveen New. However, Nuveen Amt-free is 1.04 times more volatile than Nuveen New York. It trades about 0.18 of its potential returns per unit of risk. Nuveen New York is currently generating about 0.17 per unit of risk. If you would invest 1,062 in Nuveen Amt Free Municipal on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Nuveen Amt Free Municipal or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Amt Free Municipal vs. Nuveen New York
Performance |
| Timeline |
| Nuveen Amt Free |
| Nuveen New York |
Nuveen Amt-free and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Amt-free and Nuveen New
The main advantage of trading using opposite Nuveen Amt-free and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt-free position performs unexpectedly, Nuveen New 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 Nuveen New will offset losses from the drop in Nuveen New's long position.| Nuveen Amt-free vs. MFS Investment Grade | Nuveen Amt-free vs. Eaton Vance Municipal | Nuveen Amt-free vs. DTF Tax Free | Nuveen Amt-free vs. Aquagold International |
| Nuveen New vs. Pimco New York | Nuveen New vs. Pimco California Municipal | Nuveen New vs. Pimco Municipal Income | Nuveen New vs. Pimco California Municipal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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