Correlation Between Nuveen Pennsylvania and CBH
Can any of the company-specific risk be diversified away by investing in both Nuveen Pennsylvania 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 Pennsylvania and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Pennsylvania Quality and CBH, you can compare the effects of market volatilities on Nuveen Pennsylvania 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 Pennsylvania with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Pennsylvania and CBH.
Diversification Opportunities for Nuveen Pennsylvania and CBH
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and CBH is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Pennsylvania Quality and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Nuveen Pennsylvania 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 Pennsylvania Quality 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 Pennsylvania i.e., Nuveen Pennsylvania and CBH go up and down completely randomly.
Pair Corralation between Nuveen Pennsylvania and CBH
If you would invest 919.00 in CBH on August 31, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Nuveen Pennsylvania Quality vs. CBH
Performance |
| Timeline |
| Nuveen Pennsylvania |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Pennsylvania and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Pennsylvania and CBH
The main advantage of trading using opposite Nuveen Pennsylvania and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Pennsylvania 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 Pennsylvania vs. Invesco Trust For | Nuveen Pennsylvania vs. Invesco California Value | Nuveen Pennsylvania vs. GAMCO Natural Resources | Nuveen Pennsylvania vs. Invesco Advantage MIT |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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