Correlation Between Nuveen Symphony and Western Asset
Can any of the company-specific risk be diversified away by investing in both Nuveen Symphony and Western Asset 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 Symphony and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Symphony Floating and Western Asset Managed, you can compare the effects of market volatilities on Nuveen Symphony and Western Asset 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 Symphony with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Symphony and Western Asset.
Diversification Opportunities for Nuveen Symphony and Western Asset
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and Western is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Symphony Floating and Western Asset Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Managed and Nuveen Symphony 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 Symphony Floating are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Managed has no effect on the direction of Nuveen Symphony i.e., Nuveen Symphony and Western Asset go up and down completely randomly.
Pair Corralation between Nuveen Symphony and Western Asset
Assuming the 90 days horizon Nuveen Symphony Floating is expected to generate 0.74 times more return on investment than Western Asset. However, Nuveen Symphony Floating is 1.34 times less risky than Western Asset. It trades about 0.21 of its potential returns per unit of risk. Western Asset Managed is currently generating about 0.11 per unit of risk. If you would invest 1,737 in Nuveen Symphony Floating on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Nuveen Symphony Floating or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Symphony Floating vs. Western Asset Managed
Performance |
| Timeline |
| Nuveen Symphony Floating |
| Western Asset Managed |
Nuveen Symphony and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Symphony and Western Asset
The main advantage of trading using opposite Nuveen Symphony and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Symphony position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen High Yield |
| Western Asset vs. Diversified Municipal Portfolio | Western Asset vs. Western Asset Managed | Western Asset vs. Western Asset Managed | Western Asset vs. Nuveen High Yield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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