Correlation Between Nuveen Strategic and Multi Index
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Multi Index 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 Multi Index 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 Multi Index 2030 Lifetime, you can compare the effects of market volatilities on Nuveen Strategic and Multi Index 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 Multi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Multi Index.
Diversification Opportunities for Nuveen Strategic and Multi Index
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Multi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Multi Index 2030 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2030 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 Multi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2030 has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Multi Index go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Multi Index
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.52 times more return on investment than Multi Index. However, Nuveen Strategic Municipal is 1.91 times less risky than Multi Index. It trades about 0.12 of its potential returns per unit of risk. Multi Index 2030 Lifetime is currently generating about 0.0 per unit of risk. If you would invest 981.00 in Nuveen Strategic Municipal on November 7, 2024 and sell it today you would earn a total of 18.00 from holding Nuveen Strategic Municipal or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Multi Index 2030 Lifetime
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Multi Index 2030 |
Nuveen Strategic and Multi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Multi Index
The main advantage of trading using opposite Nuveen Strategic and Multi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Multi Index 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 Multi Index will offset losses from the drop in Multi Index's 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 |
| Multi Index vs. Massmutual Premier Diversified | Multi Index vs. Harbor Diversified International | Multi Index vs. Global Diversified Income | Multi Index vs. Diversified Income Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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