Correlation Between Nuveen Strategic and Cliffwater Enhanced
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Cliffwater Enhanced 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 Cliffwater Enhanced 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 Cliffwater Enhanced Lending, you can compare the effects of market volatilities on Nuveen Strategic and Cliffwater Enhanced 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 Cliffwater Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Cliffwater Enhanced.
Diversification Opportunities for Nuveen Strategic and Cliffwater Enhanced
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Cliffwater is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Cliffwater Enhanced Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cliffwater Enhanced 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 Cliffwater Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cliffwater Enhanced has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Cliffwater Enhanced go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Cliffwater Enhanced
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.43 times more return on investment than Cliffwater Enhanced. However, Nuveen Strategic Municipal is 2.33 times less risky than Cliffwater Enhanced. It trades about -0.32 of its potential returns per unit of risk. Cliffwater Enhanced Lending is currently generating about -0.16 per unit of risk. If you would invest 1,015 in Nuveen Strategic Municipal on October 11, 2024 and sell it today you would lose (16.00) from holding Nuveen Strategic Municipal or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Cliffwater Enhanced Lending
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Cliffwater Enhanced |
Nuveen Strategic and Cliffwater Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Cliffwater Enhanced
The main advantage of trading using opposite Nuveen Strategic and Cliffwater Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Cliffwater Enhanced 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 Cliffwater Enhanced will offset losses from the drop in Cliffwater Enhanced's long position.| Nuveen Strategic vs. Fidelity Small Cap | Nuveen Strategic vs. Ultrasmall Cap Profund Ultrasmall Cap | Nuveen Strategic vs. Mid Cap 15x Strategy | Nuveen Strategic vs. Valic Company I |
| Cliffwater Enhanced vs. Bbh Intermediate Municipal | Cliffwater Enhanced vs. Multisector Bond Sma | Cliffwater Enhanced vs. Dws Government Money | Cliffwater Enhanced 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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