Correlation Between Nuveen Strategic and Europe 125x
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Europe 125x 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 Europe 125x 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 Europe 125x Strategy, you can compare the effects of market volatilities on Nuveen Strategic and Europe 125x 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 Europe 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Europe 125x.
Diversification Opportunities for Nuveen Strategic and Europe 125x
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nuveen and Europe is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Europe 125x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europe 125x Strategy 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 Europe 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europe 125x Strategy has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Europe 125x go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Europe 125x
Assuming the 90 days horizon Nuveen Strategic is expected to generate 4.81 times less return on investment than Europe 125x. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 4.84 times less risky than Europe 125x. It trades about 0.33 of its potential returns per unit of risk. Europe 125x Strategy is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 7,843 in Europe 125x Strategy on November 9, 2024 and sell it today you would earn a total of 580.00 from holding Europe 125x Strategy or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Europe 125x Strategy
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Europe 125x Strategy |
Nuveen Strategic and Europe 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Europe 125x
The main advantage of trading using opposite Nuveen Strategic and Europe 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Europe 125x 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 Europe 125x will offset losses from the drop in Europe 125x's long position.| Nuveen Strategic vs. Morningstar Defensive Bond | Nuveen Strategic vs. Multisector Bond Sma | Nuveen Strategic vs. Ab Global Bond | Nuveen Strategic vs. Ab Bond Inflation |
| Europe 125x vs. Hewitt Money Market | Europe 125x vs. Financials Ultrasector Profund | Europe 125x vs. John Hancock Money | Europe 125x vs. Edward Jones 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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