Correlation Between Nuveen Senior and Nuveen Core
Can any of the company-specific risk be diversified away by investing in both Nuveen Senior and Nuveen Core 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 Senior and Nuveen Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Senior Income and Nuveen Core Equity, you can compare the effects of market volatilities on Nuveen Senior and Nuveen Core 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 Senior with a short position of Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Senior and Nuveen Core.
Diversification Opportunities for Nuveen Senior and Nuveen Core
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Senior Income and Nuveen Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Equity and Nuveen Senior 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 Senior Income are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Equity has no effect on the direction of Nuveen Senior i.e., Nuveen Senior and Nuveen Core go up and down completely randomly.
Pair Corralation between Nuveen Senior and Nuveen Core
If you would invest 1,554 in Nuveen Core Equity on October 23, 2024 and sell it today you would earn a total of 23.00 from holding Nuveen Core Equity or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Nuveen Senior Income vs. Nuveen Core Equity
Performance |
| Timeline |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Core Equity |
Nuveen Senior and Nuveen Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Senior and Nuveen Core
The main advantage of trading using opposite Nuveen Senior and Nuveen Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Senior position performs unexpectedly, Nuveen Core 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 Nuveen Core will offset losses from the drop in Nuveen Core's long position.| Nuveen Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
| Nuveen Core vs. Brandywineglobal Globalome Opportunities | Nuveen Core vs. Western Asset Global | Nuveen Core vs. Pioneer Floating Rate | Nuveen Core vs. Nuveen Real Asset |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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