Correlation Between Nuveen Preferred and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Nuveen Preferred and Nuveen Winslow 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 Preferred and Nuveen Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Preferred Securities and Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Nuveen Preferred and Nuveen Winslow 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 Preferred with a short position of Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Preferred and Nuveen Winslow.
Diversification Opportunities for Nuveen Preferred and Nuveen Winslow
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and NUVEEN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Preferred Securities and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large and Nuveen Preferred 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 Preferred Securities are associated (or correlated) with Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Nuveen Preferred i.e., Nuveen Preferred and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Nuveen Preferred and Nuveen Winslow
Assuming the 90 days horizon Nuveen Preferred is expected to generate 64.83 times less return on investment than Nuveen Winslow. But when comparing it to its historical volatility, Nuveen Preferred Securities is 7.74 times less risky than Nuveen Winslow. It trades about 0.02 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,243 in Nuveen Winslow Large Cap on August 29, 2024 and sell it today you would earn a total of 263.00 from holding Nuveen Winslow Large Cap or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Preferred Securities vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Nuveen Preferred Sec |
| Nuveen Winslow Large |
Nuveen Preferred and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Preferred and Nuveen Winslow
The main advantage of trading using opposite Nuveen Preferred and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Preferred position performs unexpectedly, Nuveen Winslow 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 Nuveen Winslow will offset losses from the drop in Nuveen Winslow's long position.| Nuveen Preferred vs. Science Technology Fund | Nuveen Preferred vs. Icon Information Technology | Nuveen Preferred vs. Janus Global Technology | Nuveen Preferred vs. Hennessy Technology Fund |
| Nuveen Winslow vs. Massmutual Premier Diversified | Nuveen Winslow vs. Adams Diversified Equity | Nuveen Winslow vs. Delaware Limited Term Diversified | Nuveen Winslow vs. Pgim Conservative Retirement |
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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