Correlation Between Nebraska Municipal and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Nuveen Small 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 Nebraska Municipal and Nuveen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebraska Municipal Fund and Nuveen Small Cap, you can compare the effects of market volatilities on Nebraska Municipal and Nuveen Small 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 Nebraska Municipal with a short position of Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Nuveen Small.
Diversification Opportunities for Nebraska Municipal and Nuveen Small
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nebraska and Nuveen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap and Nebraska Municipal 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 Nebraska Municipal Fund are associated (or correlated) with Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Nuveen Small go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Nuveen Small
Assuming the 90 days horizon Nebraska Municipal Fund is expected to generate 0.25 times more return on investment than Nuveen Small. However, Nebraska Municipal Fund is 3.98 times less risky than Nuveen Small. It trades about 0.07 of its potential returns per unit of risk. Nuveen Small Cap is currently generating about -0.23 per unit of risk. If you would invest 920.00 in Nebraska Municipal Fund on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Nebraska Municipal Fund or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Nuveen Small Cap
Performance |
| Timeline |
| Nebraska Municipal |
| Nuveen Small Cap |
Nebraska Municipal and Nuveen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Nuveen Small
The main advantage of trading using opposite Nebraska Municipal and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal position performs unexpectedly, Nuveen Small 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 Small will offset losses from the drop in Nuveen Small's long position.| Nebraska Municipal vs. Aqr Managed Futures | Nebraska Municipal vs. The Hartford Inflation | Nebraska Municipal vs. Ab Bond Inflation | Nebraska Municipal vs. The Hartford Inflation |
| Nuveen Small vs. Simt Multi Asset Inflation | Nuveen Small vs. Inflation Adjusted Bond Fund | Nuveen Small vs. Cref Inflation Linked Bond | Nuveen Small vs. Ab Bond Inflation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |