Correlation Between Nuveen Strategic and Ivy Small

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Ivy Small 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 Ivy Small 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 Ivy Small Cap, you can compare the effects of market volatilities on Nuveen Strategic and Ivy Small 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 Ivy Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Ivy Small.

Diversification Opportunities for Nuveen Strategic and Ivy Small

NuveenIvyDiversified AwayNuveenIvyDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Nuveen and Ivy is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Ivy Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Small Cap 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 Ivy Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Small Cap has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Ivy Small go up and down completely randomly.

Pair Corralation between Nuveen Strategic and Ivy Small

Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.17 times more return on investment than Ivy Small. However, Nuveen Strategic Municipal is 5.78 times less risky than Ivy Small. It trades about 0.28 of its potential returns per unit of risk. Ivy Small Cap is currently generating about -0.25 per unit of risk. If you would invest  995.00  in Nuveen Strategic Municipal on November 30, 2024 and sell it today you would earn a total of  13.00  from holding Nuveen Strategic Municipal or generate 1.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Nuveen Strategic Municipal  vs.  Ivy Small Cap

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 051015
JavaScript chart by amCharts 3.21.15NSIOX WSCYX
       Timeline  
Nuveen Strategic Mun 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Nuveen Strategic Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen Strategic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.859.99.951010.0510.1
Ivy Small Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ivy Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb18.51919.52020.52121.5

Nuveen Strategic and Ivy Small Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.76-0.52-0.28-0.0803-0.0033450.0730.260.50.740.98 123456
JavaScript chart by amCharts 3.21.15NSIOX WSCYX
       Returns  

Pair Trading with Nuveen Strategic and Ivy Small

The main advantage of trading using opposite Nuveen Strategic and Ivy Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Ivy Small 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 Ivy Small will offset losses from the drop in Ivy Small's long position.
The idea behind Nuveen Strategic Municipal and Ivy Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Money Managers
Screen money managers from public funds and ETFs managed around the world
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum