Correlation Between Nuveen Municipal and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen Municipal and CBH 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 Municipal and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Municipal Credit and CBH, you can compare the effects of market volatilities on Nuveen Municipal and CBH 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 Municipal with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Municipal and CBH.
Diversification Opportunities for Nuveen Municipal and CBH
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and CBH is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Municipal Credit and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen Municipal 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 Municipal Credit are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Nuveen Municipal i.e., Nuveen Municipal and CBH go up and down completely randomly.
Pair Corralation between Nuveen Municipal and CBH
If you would invest 1,096 in Nuveen Municipal Credit on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Nuveen Municipal Credit or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nuveen Municipal Credit vs. CBH
Performance |
| Timeline |
| Nuveen Municipal Credit |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Municipal and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Municipal and CBH
The main advantage of trading using opposite Nuveen Municipal and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Municipal position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Nuveen Municipal vs. Munivest Fund | Nuveen Municipal vs. Blackrock Muniholdings Quality | Nuveen Municipal vs. DWS Municipal Income | Nuveen Municipal vs. Blackrock Muniholdings Closed |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |