Correlation Between Nuveen California and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Munivest Fund 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 California and Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen California Amt and Munivest Fund, you can compare the effects of market volatilities on Nuveen California and Munivest Fund 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 California with a short position of Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Munivest Fund.
Diversification Opportunities for Nuveen California and Munivest Fund
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Munivest is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Amt and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund and Nuveen California 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 California Amt are associated (or correlated) with Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Nuveen California i.e., Nuveen California and Munivest Fund go up and down completely randomly.
Pair Corralation between Nuveen California and Munivest Fund
Considering the 90-day investment horizon Nuveen California Amt is expected to generate 1.35 times more return on investment than Munivest Fund. However, Nuveen California is 1.35 times more volatile than Munivest Fund. It trades about 0.13 of its potential returns per unit of risk. Munivest Fund is currently generating about 0.12 per unit of risk. If you would invest 1,130 in Nuveen California Amt on September 2, 2024 and sell it today you would earn a total of 158.00 from holding Nuveen California Amt or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen California Amt vs. Munivest Fund
Performance |
| Timeline |
| Nuveen California Amt |
| Munivest Fund |
Nuveen California and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Munivest Fund
The main advantage of trading using opposite Nuveen California and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.| Nuveen California vs. BlackRock California Municipal | Nuveen California vs. Blackrock Muniyield Quality | Nuveen California vs. Blackrock Muni Intermediate | Nuveen California vs. Munivest Fund |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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