Correlation Between Nuveen Global and Aegis Value
Can any of the company-specific risk be diversified away by investing in both Nuveen Global and Aegis Value 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 Global and Aegis Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Global Real and Aegis Value Fund, you can compare the effects of market volatilities on Nuveen Global and Aegis Value 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 Global with a short position of Aegis Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Global and Aegis Value.
Diversification Opportunities for Nuveen Global and Aegis Value
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NUVEEN and Aegis is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Global Real and Aegis Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegis Value Fund and Nuveen Global 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 Global Real are associated (or correlated) with Aegis Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegis Value Fund has no effect on the direction of Nuveen Global i.e., Nuveen Global and Aegis Value go up and down completely randomly.
Pair Corralation between Nuveen Global and Aegis Value
Assuming the 90 days horizon Nuveen Global Real is expected to generate 0.75 times more return on investment than Aegis Value. However, Nuveen Global Real is 1.34 times less risky than Aegis Value. It trades about -0.02 of its potential returns per unit of risk. Aegis Value Fund is currently generating about -0.05 per unit of risk. If you would invest 1,953 in Nuveen Global Real on August 29, 2024 and sell it today you would lose (8.00) from holding Nuveen Global Real or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Global Real vs. Aegis Value Fund
Performance |
| Timeline |
| Nuveen Global Real |
| Aegis Value Fund |
Nuveen Global and Aegis Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Global and Aegis Value
The main advantage of trading using opposite Nuveen Global and Aegis Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Global position performs unexpectedly, Aegis Value 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 Aegis Value will offset losses from the drop in Aegis Value's long position.| Nuveen Global vs. Nuveen Small Cap | Nuveen Global vs. Nuveen Real Estate | Nuveen Global vs. Nuveen Real Estate | Nuveen Global vs. Nuveen Preferred Securities |
| Aegis Value vs. Eic Value Fund | Aegis Value vs. Omni Small Cap Value | Aegis Value vs. L Abbett Fundamental | Aegis Value vs. Qs Growth Fund |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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