Correlation Between Nuveen Amt-free and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt-free and Cohen Steers 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 Amt-free and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Amt Free Municipal and Cohen Steers Limited, you can compare the effects of market volatilities on Nuveen Amt-free and Cohen Steers 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 Amt-free with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt-free and Cohen Steers.
Diversification Opportunities for Nuveen Amt-free and Cohen Steers
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Cohen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited and Nuveen Amt-free 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 Amt Free Municipal are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Limited has no effect on the direction of Nuveen Amt-free i.e., Nuveen Amt-free and Cohen Steers go up and down completely randomly.
Pair Corralation between Nuveen Amt-free and Cohen Steers
Considering the 90-day investment horizon Nuveen Amt-free is expected to generate 2.87 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Nuveen Amt Free Municipal is 1.34 times less risky than Cohen Steers. It trades about 0.03 of its potential returns per unit of risk. Cohen Steers Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,631 in Cohen Steers Limited on August 28, 2024 and sell it today you would earn a total of 466.00 from holding Cohen Steers Limited or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Amt Free Municipal vs. Cohen Steers Limited
Performance |
| Timeline |
| Nuveen Amt Free |
| Cohen Steers Limited |
Nuveen Amt-free and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Amt-free and Cohen Steers
The main advantage of trading using opposite Nuveen Amt-free and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt-free position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Nuveen Amt-free vs. Nuveen New York | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Pimco New York | Nuveen Amt-free vs. Nuveen Municipalome |
| Cohen Steers vs. Flaherty and Crumrine | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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