Correlation Between Nuveen California and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Platinum Asia 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 Platinum Asia 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 Platinum Asia Investments, you can compare the effects of market volatilities on Nuveen California and Platinum Asia 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 Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Platinum Asia.
Diversification Opportunities for Nuveen California and Platinum Asia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Platinum is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Amt and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Nuveen California i.e., Nuveen California and Platinum Asia go up and down completely randomly.
Pair Corralation between Nuveen California and Platinum Asia
Considering the 90-day investment horizon Nuveen California Amt is expected to generate 1.24 times more return on investment than Platinum Asia. However, Nuveen California is 1.24 times more volatile than Platinum Asia Investments. It trades about 0.08 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.07 per unit of risk. If you would invest 1,030 in Nuveen California Amt on August 31, 2024 and sell it today you would earn a total of 255.00 from holding Nuveen California Amt or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Nuveen California Amt vs. Platinum Asia Investments
Performance |
| Timeline |
| Nuveen California Amt |
| Platinum Asia Investments |
Nuveen California and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Platinum Asia
The main advantage of trading using opposite Nuveen California and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia'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 |
| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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