Correlation Between Nuveen Short-duration and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Nuveen Short-duration and Nuveen Minnesota 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-duration and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Short Duration High and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Nuveen Short-duration and Nuveen Minnesota 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-duration with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Short-duration and Nuveen Minnesota.
Diversification Opportunities for Nuveen Short-duration and Nuveen Minnesota
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nuveen and Nuveen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Duration High and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Nuveen Short-duration 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 Duration High are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Nuveen Short-duration i.e., Nuveen Short-duration and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Nuveen Short-duration and Nuveen Minnesota
Assuming the 90 days horizon Nuveen Short Duration High is expected to generate 0.95 times more return on investment than Nuveen Minnesota. However, Nuveen Short Duration High is 1.06 times less risky than Nuveen Minnesota. It trades about 0.13 of its potential returns per unit of risk. Nuveen Minnesota Municipal is currently generating about 0.07 per unit of risk. If you would invest 910.00 in Nuveen Short Duration High on November 8, 2024 and sell it today you would earn a total of 59.00 from holding Nuveen Short Duration High or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Short Duration High vs. Nuveen Minnesota Municipal
Performance |
| Timeline |
| Nuveen Short Duration |
| Nuveen Minnesota Mun |
Nuveen Short-duration and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Short-duration and Nuveen Minnesota
The main advantage of trading using opposite Nuveen Short-duration and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short-duration position performs unexpectedly, Nuveen Minnesota 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 Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Nuveen Short-duration vs. Nuveen Core Equity | Nuveen Short-duration vs. Ultra Short Fixed Income | Nuveen Short-duration vs. Old Westbury Fixed | Nuveen Short-duration vs. Dws Equity Sector |
| Nuveen Minnesota vs. Alphacentric Lifesci Healthcare | Nuveen Minnesota vs. Lord Abbett Health | Nuveen Minnesota vs. Vanguard Health Care | Nuveen Minnesota vs. Eaton Vance Worldwide |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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