Correlation Between Nuveen Strategic and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Lazard Equity 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 Lazard Equity 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 Lazard Equity Franchise, you can compare the effects of market volatilities on Nuveen Strategic and Lazard Equity 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 Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Lazard Equity.
Diversification Opportunities for Nuveen Strategic and Lazard Equity
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Lazard is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Lazard Equity Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Franchise 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 Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Franchise has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Lazard Equity go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Lazard Equity
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.09 times more return on investment than Lazard Equity. However, Nuveen Strategic Municipal is 11.41 times less risky than Lazard Equity. It trades about -0.34 of its potential returns per unit of risk. Lazard Equity Franchise is currently generating about -0.34 per unit of risk. If you would invest 1,016 in Nuveen Strategic Municipal on October 10, 2024 and sell it today you would lose (17.00) from holding Nuveen Strategic Municipal or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Lazard Equity Franchise
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Lazard Equity Franchise |
Nuveen Strategic and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Lazard Equity
The main advantage of trading using opposite Nuveen Strategic and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Lazard Equity 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 Lazard Equity will offset losses from the drop in Lazard Equity's long position.| Nuveen Strategic vs. Delaware Healthcare Fund | Nuveen Strategic vs. Highland Longshort Healthcare | Nuveen Strategic vs. Hartford Healthcare Hls | Nuveen Strategic vs. Alger Health Sciences |
| Lazard Equity vs. T Rowe Price | Lazard Equity vs. Nuveen Strategic Municipal | Lazard Equity vs. Virtus Seix Government | Lazard Equity vs. Transamerica Intermediate Muni |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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