Correlation Between Nuveen Strategic and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Nuveen Strategic and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Angel Oak.
Diversification Opportunities for Nuveen Strategic and Angel Oak
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Angel is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Angel Oak go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Angel Oak
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 1.07 times more return on investment than Angel Oak. However, Nuveen Strategic is 1.07 times more volatile than Angel Oak Financial. It trades about 0.06 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.04 per unit of risk. If you would invest 921.00 in Nuveen Strategic Municipal on October 14, 2024 and sell it today you would earn a total of 73.00 from holding Nuveen Strategic Municipal or generate 7.93% 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. Angel Oak Financial
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Angel Oak Financial |
Nuveen Strategic and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Angel Oak
The main advantage of trading using opposite Nuveen Strategic and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Nuveen Strategic vs. Nuveen Small Cap | Nuveen Strategic vs. Nuveen Real Estate | Nuveen Strategic vs. Nuveen Real Estate | Nuveen Strategic vs. Nuveen Preferred Securities |
| Angel Oak vs. Alpine Ultra Short | Angel Oak vs. American High Income Municipal | Angel Oak vs. Nuveen Strategic Municipal | Angel Oak vs. Franklin Adjustable Government |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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