Correlation Between Nuveen Strategic and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Oklahoma Municipal 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 Oklahoma Municipal 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 Oklahoma Municipal Fund, you can compare the effects of market volatilities on Nuveen Strategic and Oklahoma Municipal 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 Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Oklahoma Municipal.
Diversification Opportunities for Nuveen Strategic and Oklahoma Municipal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Oklahoma is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal 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 Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Oklahoma Municipal
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.98 times more return on investment than Oklahoma Municipal. However, Nuveen Strategic Municipal is 1.02 times less risky than Oklahoma Municipal. It trades about -0.07 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about -0.13 per unit of risk. If you would invest 1,007 in Nuveen Strategic Municipal on October 30, 2024 and sell it today you would lose (8.00) from holding Nuveen Strategic Municipal or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Oklahoma Municipal |
Nuveen Strategic and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Oklahoma Municipal
The main advantage of trading using opposite Nuveen Strategic and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Nuveen Strategic vs. Fpa Queens Road | Nuveen Strategic vs. Walden Smid Cap | Nuveen Strategic vs. Heartland Value Plus | Nuveen Strategic vs. Queens Road Small |
| Oklahoma Municipal vs. Real Estate Fund | Oklahoma Municipal vs. Rreef Property Trust | Oklahoma Municipal vs. Real Estate Ultrasector | Oklahoma Municipal vs. Forum Real Estate |
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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