Correlation Between Nuveen Strategic and Highland Longshort
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Highland Longshort 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 Highland Longshort 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 Highland Longshort Healthcare, you can compare the effects of market volatilities on Nuveen Strategic and Highland Longshort 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 Highland Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Highland Longshort.
Diversification Opportunities for Nuveen Strategic and Highland Longshort
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nuveen and Highland is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Longshort 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 Highland Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Longshort has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Highland Longshort go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Highland Longshort
Assuming the 90 days horizon Nuveen Strategic is expected to generate 1.96 times less return on investment than Highland Longshort. In addition to that, Nuveen Strategic is 1.34 times more volatile than Highland Longshort Healthcare. It trades about 0.14 of its total potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.36 per unit of volatility. If you would invest 1,642 in Highland Longshort Healthcare on October 27, 2024 and sell it today you would earn a total of 23.00 from holding Highland Longshort Healthcare or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Highland Longshort |
Nuveen Strategic and Highland Longshort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Highland Longshort
The main advantage of trading using opposite Nuveen Strategic and Highland Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Highland Longshort 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 Highland Longshort will offset losses from the drop in Highland Longshort's long position.| Nuveen Strategic vs. Growth Strategy Fund | Nuveen Strategic vs. Embark Commodity Strategy | Nuveen Strategic vs. Commodities Strategy Fund | Nuveen Strategic vs. Pimco Moditiesplus Strategy |
| Highland Longshort vs. L Abbett Growth | Highland Longshort vs. Transamerica Capital Growth | Highland Longshort vs. Rational Defensive Growth | Highland Longshort vs. Needham Aggressive Growth |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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