Correlation Between Nuveen Strategic and Fbjygx
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Fbjygx 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 Fbjygx 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 Fbjygx, you can compare the effects of market volatilities on Nuveen Strategic and Fbjygx 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 Fbjygx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Fbjygx.
Diversification Opportunities for Nuveen Strategic and Fbjygx
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and Fbjygx is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Fbjygx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbjygx 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 Fbjygx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbjygx has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Fbjygx go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Fbjygx
Assuming the 90 days horizon Nuveen Strategic is expected to generate 13.31 times less return on investment than Fbjygx. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 2.97 times less risky than Fbjygx. It trades about 0.08 of its potential returns per unit of risk. Fbjygx is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 913.00 in Fbjygx on November 3, 2024 and sell it today you would earn a total of 45.00 from holding Fbjygx or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Fbjygx
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Fbjygx |
Nuveen Strategic and Fbjygx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Fbjygx
The main advantage of trading using opposite Nuveen Strategic and Fbjygx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Fbjygx 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 Fbjygx will offset losses from the drop in Fbjygx'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 |
| Fbjygx vs. Vanguard Total Stock | Fbjygx vs. Vanguard 500 Index | Fbjygx vs. Vanguard Total Stock | Fbjygx vs. Vanguard Total Stock |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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