Correlation Between Nuveen Strategic and Cardinal Small
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Cardinal Small 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 Cardinal Small 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 Cardinal Small Cap, you can compare the effects of market volatilities on Nuveen Strategic and Cardinal Small 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 Cardinal Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Cardinal Small.
Diversification Opportunities for Nuveen Strategic and Cardinal Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Cardinal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Cardinal Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Small Cap 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 Cardinal Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Small Cap has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Cardinal Small go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Cardinal Small
Assuming the 90 days horizon Nuveen Strategic is expected to generate 1.96 times less return on investment than Cardinal Small. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 3.84 times less risky than Cardinal Small. It trades about 0.11 of its potential returns per unit of risk. Cardinal Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,295 in Cardinal Small Cap on November 3, 2024 and sell it today you would earn a total of 149.00 from holding Cardinal Small Cap or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Cardinal Small Cap
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Cardinal Small Cap |
Nuveen Strategic and Cardinal Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Cardinal Small
The main advantage of trading using opposite Nuveen Strategic and Cardinal Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Cardinal Small 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 Cardinal Small will offset losses from the drop in Cardinal Small's long position.| Nuveen Strategic vs. Rbc Bluebay Emerging | Nuveen Strategic vs. Versatile Bond Portfolio | Nuveen Strategic vs. Barings High Yield | Nuveen Strategic vs. Baird Quality Intermediate |
| Cardinal Small vs. Gabelli Global Financial | Cardinal Small vs. Mesirow Financial Small | Cardinal Small vs. Financial Industries Fund | Cardinal Small vs. Angel Oak Financial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |