Correlation Between Nuveen New and Elfun Diversified
Can any of the company-specific risk be diversified away by investing in both Nuveen New and Elfun Diversified 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 New and Elfun Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen New Jersey and Elfun Diversified Fund, you can compare the effects of market volatilities on Nuveen New and Elfun Diversified 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 New with a short position of Elfun Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Elfun Diversified.
Diversification Opportunities for Nuveen New and Elfun Diversified
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Elfun is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Elfun Diversified Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Diversified and Nuveen New 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 New Jersey are associated (or correlated) with Elfun Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Diversified has no effect on the direction of Nuveen New i.e., Nuveen New and Elfun Diversified go up and down completely randomly.
Pair Corralation between Nuveen New and Elfun Diversified
Assuming the 90 days horizon Nuveen New Jersey is expected to under-perform the Elfun Diversified. But the mutual fund apears to be less risky and, when comparing its historical volatility, Nuveen New Jersey is 2.04 times less risky than Elfun Diversified. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Elfun Diversified Fund is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Elfun Diversified Fund on November 3, 2024 and sell it today you would earn a total of 55.00 from holding Elfun Diversified Fund or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New Jersey vs. Elfun Diversified Fund
Performance |
| Timeline |
| Nuveen New Jersey |
| Elfun Diversified |
Nuveen New and Elfun Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and Elfun Diversified
The main advantage of trading using opposite Nuveen New and Elfun Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, Elfun Diversified 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 Elfun Diversified will offset losses from the drop in Elfun Diversified's long position.| Nuveen New vs. Nuveen Minnesota Municipal | Nuveen New vs. Nuveen Symphony Floating | Nuveen New vs. Nuveen Symphony Floating | Nuveen New vs. Nuveen Symphony Floating |
| Elfun Diversified vs. State Street Target | Elfun Diversified vs. State Street Target | Elfun Diversified vs. Ssga International Stock | Elfun Diversified vs. State Street Target |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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