Correlation Between Nuveen New and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Nuveen New and Aqr 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 Aqr 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 Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Nuveen New and Aqr 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 Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Aqr Diversified.
Diversification Opportunities for Nuveen New and Aqr Diversified
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Aqr is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage 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 Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Nuveen New i.e., Nuveen New and Aqr Diversified go up and down completely randomly.
Pair Corralation between Nuveen New and Aqr Diversified
Assuming the 90 days horizon Nuveen New Jersey is expected to under-perform the Aqr Diversified. In addition to that, Nuveen New is 2.01 times more volatile than Aqr Diversified Arbitrage. It trades about -0.05 of its total potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.22 per unit of volatility. If you would invest 1,211 in Aqr Diversified Arbitrage on November 4, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Diversified Arbitrage or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New Jersey vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Nuveen New Jersey |
| Aqr Diversified Arbitrage |
Nuveen New and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and Aqr Diversified
The main advantage of trading using opposite Nuveen New and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, Aqr 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 Aqr Diversified will offset losses from the drop in Aqr 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 |
| Aqr Diversified vs. Gabelli Convertible And | Aqr Diversified vs. Rationalpier 88 Convertible | Aqr Diversified vs. Fidelity Sai Convertible | Aqr Diversified vs. Allianzgi Convertible Income |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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