Correlation Between Nebraska Municipal and Ge Ss
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Ge Ss 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 Ge Ss 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 Ge Ss Inc, you can compare the effects of market volatilities on Nebraska Municipal and Ge Ss 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 Ge Ss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Ge Ss.
Diversification Opportunities for Nebraska Municipal and Ge Ss
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nebraska and GESLX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Ge Ss Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ge Ss Inc 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 Ge Ss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ge Ss Inc has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Ge Ss go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Ge Ss
If you would invest 930.00 in Nebraska Municipal Fund on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Nebraska Municipal Fund or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Ge Ss Inc
Performance |
| Timeline |
| Nebraska Municipal |
| Ge Ss Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nebraska Municipal and Ge Ss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Ge Ss
The main advantage of trading using opposite Nebraska Municipal and Ge Ss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal position performs unexpectedly, Ge Ss 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 Ge Ss will offset losses from the drop in Ge Ss' long position.| Nebraska Municipal vs. Lord Abbett Convertible | Nebraska Municipal vs. Harbor Vertible Securities | Nebraska Municipal vs. Virtus Convertible | Nebraska Municipal vs. Rationalpier 88 Convertible |
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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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