Correlation Between Nuveen Strategic and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Massmutual Select 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 Massmutual Select 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 Massmutual Select Total, you can compare the effects of market volatilities on Nuveen Strategic and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Massmutual Select.
Diversification Opportunities for Nuveen Strategic and Massmutual Select
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Massmutual is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Total has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Massmutual Select go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Massmutual Select
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.54 times more return on investment than Massmutual Select. However, Nuveen Strategic Municipal is 1.85 times less risky than Massmutual Select. It trades about 0.07 of its potential returns per unit of risk. Massmutual Select Total is currently generating about 0.01 per unit of risk. If you would invest 923.00 in Nuveen Strategic Municipal on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Nuveen Strategic Municipal or generate 8.23% 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. Massmutual Select Total
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Massmutual Select Total |
Nuveen Strategic and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Massmutual Select
The main advantage of trading using opposite Nuveen Strategic and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select'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 |
| Massmutual Select vs. Pioneer Amt Free Municipal | Massmutual Select vs. Fidelity California Municipal | Massmutual Select vs. Nuveen Strategic Municipal | Massmutual Select vs. Dws Government Money |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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