Correlation Between Nuveen Strategic and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Mfs Lifetime 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 Mfs Lifetime 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 Mfs Lifetime 2040, you can compare the effects of market volatilities on Nuveen Strategic and Mfs Lifetime 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 Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Mfs Lifetime.
Diversification Opportunities for Nuveen Strategic and Mfs Lifetime
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Mfs is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Mfs Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2040 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 Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2040 has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Mfs Lifetime
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.24 times more return on investment than Mfs Lifetime. However, Nuveen Strategic Municipal is 4.09 times less risky than Mfs Lifetime. It trades about -0.26 of its potential returns per unit of risk. Mfs Lifetime 2040 is currently generating about -0.29 per unit of risk. If you would invest 1,015 in Nuveen Strategic Municipal on October 11, 2024 and sell it today you would lose (16.00) from holding Nuveen Strategic Municipal or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Mfs Lifetime 2040
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Mfs Lifetime 2040 |
Nuveen Strategic and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Mfs Lifetime
The main advantage of trading using opposite Nuveen Strategic and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Mfs Lifetime 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 Mfs Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Nuveen Strategic vs. Fidelity Small Cap | Nuveen Strategic vs. Ultrasmall Cap Profund Ultrasmall Cap | Nuveen Strategic vs. Mid Cap 15x Strategy | Nuveen Strategic vs. Valic Company I |
| Mfs Lifetime vs. Versatile Bond Portfolio | Mfs Lifetime vs. Metropolitan West Porate | Mfs Lifetime vs. Multisector Bond Sma | Mfs Lifetime vs. Nuveen Strategic Municipal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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