Correlation Between Nuveen Strategic and Ab High
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Ab High 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 Strategic and Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Strategic Municipal and Ab High Income, you can compare the effects of market volatilities on Nuveen Strategic and Ab High 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 Strategic with a short position of Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Ab High.
Diversification Opportunities for Nuveen Strategic and Ab High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and AGDZX is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income and Nuveen Strategic 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 Strategic Municipal are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Ab High go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Ab High
Assuming the 90 days horizon Nuveen Strategic is expected to generate 2.23 times less return on investment than Ab High. In addition to that, Nuveen Strategic is 1.07 times more volatile than Ab High Income. It trades about 0.09 of its total potential returns per unit of risk. Ab High Income is currently generating about 0.21 per unit of volatility. If you would invest 697.00 in Ab High Income on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Ab High Income or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Ab High Income
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Ab High Income |
Nuveen Strategic and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Ab High
The main advantage of trading using opposite Nuveen Strategic and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High's long position.| Nuveen Strategic vs. Maryland Tax Free Bond | Nuveen Strategic vs. Artisan High Income | Nuveen Strategic vs. Pioneer Amt Free Municipal | Nuveen Strategic vs. Intermediate Term Bond Fund |
| Ab High vs. Dws Government Money | Ab High vs. Blrc Sgy Mnp | Ab High vs. Franklin Adjustable Government | Ab High vs. Nuveen Strategic Municipal |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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