Correlation Between Nuveen Short and IShares Core
Can any of the company-specific risk be diversified away by investing in both Nuveen Short and IShares 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 Short and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Short Term REIT and iShares Core REIT, you can compare the effects of market volatilities on Nuveen Short and IShares 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 Short with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Short and IShares Core.
Diversification Opportunities for Nuveen Short and IShares Core
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Term REIT and iShares Core REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core REIT and Nuveen Short 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 Short Term REIT are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core REIT has no effect on the direction of Nuveen Short i.e., Nuveen Short and IShares Core go up and down completely randomly.
Pair Corralation between Nuveen Short and IShares Core
Given the investment horizon of 90 days Nuveen Short Term REIT is expected to generate 1.06 times more return on investment than IShares Core. However, Nuveen Short is 1.06 times more volatile than iShares Core REIT. It trades about 0.16 of its potential returns per unit of risk. iShares Core REIT is currently generating about 0.08 per unit of risk. If you would invest 3,303 in Nuveen Short Term REIT on August 27, 2024 and sell it today you would earn a total of 121.00 from holding Nuveen Short Term REIT or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Short Term REIT vs. iShares Core REIT
Performance |
| Timeline |
| Nuveen Short Term |
| iShares Core REIT |
Nuveen Short and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Short and IShares Core
The main advantage of trading using opposite Nuveen Short and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short position performs unexpectedly, IShares 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 IShares Core will offset losses from the drop in IShares Core's long position.| Nuveen Short vs. Pacer Benchmark Industrial | Nuveen Short vs. JPMorgan BetaBuilders MSCI | Nuveen Short vs. US Diversified Real | Nuveen Short vs. Invesco Active Real |
| IShares Core vs. Vanguard Real Estate | IShares Core vs. Howard Hughes | IShares Core vs. Site Centers Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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