Correlation Between Nuveen Strategic and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Intermediate, you can compare the effects of market volatilities on Nuveen Strategic and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Neuberger Berman.
Diversification Opportunities for Nuveen Strategic and Neuberger Berman
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Neuberger is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Neuberger Berman Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Int 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Int has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Neuberger Berman go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Neuberger Berman
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 0.67 times more return on investment than Neuberger Berman. However, Nuveen Strategic Municipal is 1.5 times less risky than Neuberger Berman. It trades about 0.09 of its potential returns per unit of risk. Neuberger Berman Intermediate is currently generating about -0.01 per unit of risk. If you would invest 898.00 in Nuveen Strategic Municipal on December 12, 2024 and sell it today you would earn a total of 104.00 from holding Nuveen Strategic Municipal or generate 11.58% 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. Neuberger Berman Intermediate
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Neuberger Berman Int |
Nuveen Strategic and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Neuberger Berman
The main advantage of trading using opposite Nuveen Strategic and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Nuveen Strategic vs. Financial Services Fund | ||
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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