Correlation Between Nuveen Municipalome and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Nuveen Municipalome and Eagle Point 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 Municipalome and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Municipalome and Eagle Point Income, you can compare the effects of market volatilities on Nuveen Municipalome and Eagle Point 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 Municipalome with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Municipalome and Eagle Point.
Diversification Opportunities for Nuveen Municipalome and Eagle Point
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Eagle is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Municipalome and Eagle Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income and Nuveen Municipalome 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 Municipalome are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of Nuveen Municipalome i.e., Nuveen Municipalome and Eagle Point go up and down completely randomly.
Pair Corralation between Nuveen Municipalome and Eagle Point
Considering the 90-day investment horizon Nuveen Municipalome is expected to generate 2.06 times more return on investment than Eagle Point. However, Nuveen Municipalome is 2.06 times more volatile than Eagle Point Income. It trades about 0.11 of its potential returns per unit of risk. Eagle Point Income is currently generating about 0.19 per unit of risk. If you would invest 906.00 in Nuveen Municipalome on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Nuveen Municipalome or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Municipalome vs. Eagle Point Income
Performance |
| Timeline |
| Nuveen Municipalome |
| Eagle Point Income |
Nuveen Municipalome and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Municipalome and Eagle Point
The main advantage of trading using opposite Nuveen Municipalome and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Municipalome position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Nuveen Municipalome vs. Platinum Asia Investments | Nuveen Municipalome vs. Eaton Vance New | Nuveen Municipalome vs. Nuveen New York | Nuveen Municipalome vs. Nuveen Amt Free Municipal |
| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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