Correlation Between Nuveen High and Nuveen All-american
Can any of the company-specific risk be diversified away by investing in both Nuveen High and Nuveen All-american 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 High and Nuveen All-american into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen High Yield and Nuveen All American Municipal, you can compare the effects of market volatilities on Nuveen High and Nuveen All-american 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 High with a short position of Nuveen All-american. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and Nuveen All-american.
Diversification Opportunities for Nuveen High and Nuveen All-american
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuveen and Nuveen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Yield and Nuveen All American Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen All American and Nuveen High 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 High Yield are associated (or correlated) with Nuveen All-american. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen All American has no effect on the direction of Nuveen High i.e., Nuveen High and Nuveen All-american go up and down completely randomly.
Pair Corralation between Nuveen High and Nuveen All-american
Assuming the 90 days horizon Nuveen High Yield is expected to generate 1.65 times more return on investment than Nuveen All-american. However, Nuveen High is 1.65 times more volatile than Nuveen All American Municipal. It trades about 0.05 of its potential returns per unit of risk. Nuveen All American Municipal is currently generating about 0.09 per unit of risk. If you would invest 1,397 in Nuveen High Yield on August 31, 2024 and sell it today you would earn a total of 112.00 from holding Nuveen High Yield or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen High Yield vs. Nuveen All American Municipal
Performance |
| Timeline |
| Nuveen High Yield |
| Nuveen All American |
Nuveen High and Nuveen All-american Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and Nuveen All-american
The main advantage of trading using opposite Nuveen High and Nuveen All-american positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High position performs unexpectedly, Nuveen All-american 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 All-american will offset losses from the drop in Nuveen All-american's long position.| Nuveen High vs. Oppenheimer Roc High | Nuveen High vs. Nuveen All American Municipal | Nuveen High vs. Nuveen Short Duration High | Nuveen High 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |