Correlation Between Nuveen Strategic and Georgia Tax-free
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Georgia Tax-free 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 Georgia Tax-free 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 Georgia Tax Free Bond, you can compare the effects of market volatilities on Nuveen Strategic and Georgia Tax-free 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 Georgia Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Georgia Tax-free.
Diversification Opportunities for Nuveen Strategic and Georgia Tax-free
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Nuveen and Georgia is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Georgia Tax Free Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Georgia Tax Free 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 Georgia Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Georgia Tax Free has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Georgia Tax-free go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Georgia Tax-free
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.93 times more return on investment than Georgia Tax-free. However, Nuveen Strategic Municipal is 1.08 times less risky than Georgia Tax-free. It trades about 0.09 of its potential returns per unit of risk. Georgia Tax Free Bond is currently generating about 0.06 per unit of risk. If you would invest 989.00 in Nuveen Strategic Municipal on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Nuveen Strategic Municipal or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Georgia Tax Free Bond
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Georgia Tax Free |
Nuveen Strategic and Georgia Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Georgia Tax-free
The main advantage of trading using opposite Nuveen Strategic and Georgia Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Georgia Tax-free 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 Georgia Tax-free will offset losses from the drop in Georgia Tax-free's long position.| Nuveen Strategic vs. Maryland Tax Free Bond | Nuveen Strategic vs. Artisan High Income | Nuveen Strategic vs. Pioneer Amt Free Municipal | Nuveen Strategic vs. Intermediate Term Bond Fund |
| Georgia Tax-free vs. Morningstar Defensive Bond | Georgia Tax-free vs. Intermediate Term Bond Fund | Georgia Tax-free vs. Dws Government Money | Georgia Tax-free vs. Western Asset 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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