Correlation Between Nuveen Strategic and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Fisher Investments 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 Fisher Investments 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 Fisher Large Cap, you can compare the effects of market volatilities on Nuveen Strategic and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Fisher Investments.
Diversification Opportunities for Nuveen Strategic and Fisher Investments
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Fisher is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Fisher Investments go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Fisher Investments
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.26 times more return on investment than Fisher Investments. However, Nuveen Strategic Municipal is 3.83 times less risky than Fisher Investments. It trades about -0.33 of its potential returns per unit of risk. Fisher Large Cap is currently generating about -0.33 per unit of risk. If you would invest 1,007 in Nuveen Strategic Municipal on October 14, 2024 and sell it today you would lose (17.00) from holding Nuveen Strategic Municipal or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Fisher Large Cap
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Fisher Investments |
Nuveen Strategic and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Fisher Investments
The main advantage of trading using opposite Nuveen Strategic and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.| Nuveen Strategic vs. Nuveen Small Cap | Nuveen Strategic vs. Nuveen Real Estate | Nuveen Strategic vs. Nuveen Real Estate | Nuveen Strategic vs. Nuveen Preferred Securities |
| Fisher Investments vs. Georgia Tax Free Bond | Fisher Investments vs. T Rowe Price | Fisher Investments vs. Nuveen Strategic Municipal | Fisher Investments vs. Metropolitan West Porate |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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