Correlation Between Nuveen Strategic and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Lifestyle Moderate, you can compare the effects of market volatilities on Nuveen Strategic and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Tiaa Cref.
Diversification Opportunities for Nuveen Strategic and Tiaa Cref
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Tiaa is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Tiaa Cref Lifestyle Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifestyle 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifestyle has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Tiaa Cref go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Tiaa Cref
Assuming the 90 days horizon Nuveen Strategic is expected to generate 9.16 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 2.19 times less risky than Tiaa Cref. It trades about 0.01 of its potential returns per unit of risk. Tiaa Cref Lifestyle Moderate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,450 in Tiaa Cref Lifestyle Moderate on October 18, 2024 and sell it today you would earn a total of 29.00 from holding Tiaa Cref Lifestyle Moderate or generate 2.0% 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. Tiaa Cref Lifestyle Moderate
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Tiaa Cref Lifestyle |
Nuveen Strategic and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Tiaa Cref
The main advantage of trading using opposite Nuveen Strategic and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Nuveen Strategic vs. Blackrock Health Sciences | Nuveen Strategic vs. Vanguard Health Care | Nuveen Strategic vs. Live Oak Health | Nuveen Strategic vs. Invesco Global Health |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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