Correlation Between Nuveen Santa and Nuveen Kansas
Can any of the company-specific risk be diversified away by investing in both Nuveen Santa and Nuveen Kansas 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 Santa and Nuveen Kansas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Santa Barbara and Nuveen Kansas Municipal, you can compare the effects of market volatilities on Nuveen Santa and Nuveen Kansas 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 Santa with a short position of Nuveen Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Santa and Nuveen Kansas.
Diversification Opportunities for Nuveen Santa and Nuveen Kansas
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Nuveen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Santa Barbara and Nuveen Kansas Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Kansas Municipal and Nuveen Santa 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 Santa Barbara are associated (or correlated) with Nuveen Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Kansas Municipal has no effect on the direction of Nuveen Santa i.e., Nuveen Santa and Nuveen Kansas go up and down completely randomly.
Pair Corralation between Nuveen Santa and Nuveen Kansas
Assuming the 90 days horizon Nuveen Santa Barbara is expected to generate 2.23 times more return on investment than Nuveen Kansas. However, Nuveen Santa is 2.23 times more volatile than Nuveen Kansas Municipal. It trades about 0.15 of its potential returns per unit of risk. Nuveen Kansas Municipal is currently generating about 0.22 per unit of risk. If you would invest 6,540 in Nuveen Santa Barbara on August 30, 2024 and sell it today you would earn a total of 142.00 from holding Nuveen Santa Barbara or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Santa Barbara vs. Nuveen Kansas Municipal
Performance |
| Timeline |
| Nuveen Santa Barbara |
| Nuveen Kansas Municipal |
Nuveen Santa and Nuveen Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Santa and Nuveen Kansas
The main advantage of trading using opposite Nuveen Santa and Nuveen Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Santa position performs unexpectedly, Nuveen Kansas 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 Kansas will offset losses from the drop in Nuveen Kansas' long position.| Nuveen Santa vs. Qs Large Cap | Nuveen Santa vs. Abr 7525 Volatility | Nuveen Santa vs. Balanced Fund Investor |
| Nuveen Kansas vs. American Funds Conservative | Nuveen Kansas vs. Western Asset Diversified | Nuveen Kansas vs. Jhancock Diversified Macro | Nuveen Kansas vs. Conservative Balanced Allocation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |