Correlation Between Nuveen Senior and Western Asset
Can any of the company-specific risk be diversified away by investing in both Nuveen Senior and Western Asset 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 Western Asset 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 Western Asset Diversified, you can compare the effects of market volatilities on Nuveen Senior and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Senior and Western Asset.
Diversification Opportunities for Nuveen Senior and Western Asset
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Western is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Senior Income and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of Nuveen Senior i.e., Nuveen Senior and Western Asset go up and down completely randomly.
Pair Corralation between Nuveen Senior and Western Asset
If you would invest 456.00 in Nuveen Senior Income on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Nuveen Senior Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Nuveen Senior Income vs. Western Asset Diversified
Performance |
| Timeline |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Asset Diversified |
Nuveen Senior and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Senior and Western Asset
The main advantage of trading using opposite Nuveen Senior and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Senior position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Neuberger Berman Next | Western Asset vs. Doubleline Yield Opportunities | Western Asset vs. PIMCO Access Income | Western Asset vs. Blackrock Innovation Growth |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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