Correlation Between Nuveen Santa and Sextant E
Can any of the company-specific risk be diversified away by investing in both Nuveen Santa and Sextant E 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 Sextant E 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 Sextant E Fund, you can compare the effects of market volatilities on Nuveen Santa and Sextant E 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 Sextant E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Santa and Sextant E.
Diversification Opportunities for Nuveen Santa and Sextant E
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Sextant is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Santa Barbara and Sextant E Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant E Fund 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 Sextant E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant E Fund has no effect on the direction of Nuveen Santa i.e., Nuveen Santa and Sextant E go up and down completely randomly.
Pair Corralation between Nuveen Santa and Sextant E
Assuming the 90 days horizon Nuveen Santa is expected to generate 1.57 times less return on investment than Sextant E. In addition to that, Nuveen Santa is 1.14 times more volatile than Sextant E Fund. It trades about 0.05 of its total potential returns per unit of risk. Sextant E Fund is currently generating about 0.1 per unit of volatility. If you would invest 1,728 in Sextant E Fund on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Sextant E Fund or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Santa Barbara vs. Sextant E Fund
Performance |
| Timeline |
| Nuveen Santa Barbara |
| Sextant E Fund |
Nuveen Santa and Sextant E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Santa and Sextant E
The main advantage of trading using opposite Nuveen Santa and Sextant E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Santa position performs unexpectedly, Sextant E 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 Sextant E will offset losses from the drop in Sextant E's long position.| Nuveen Santa vs. John Hancock Ii | Nuveen Santa vs. Queens Road Small | Nuveen Santa vs. Vanguard Small Cap Value | Nuveen Santa vs. William Blair Small |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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