Correlation Between Nuveen Amt and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt and Nuveen Select 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 and Nuveen Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Amt Free and Nuveen Select Maturities, you can compare the effects of market volatilities on Nuveen Amt and Nuveen Select 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 with a short position of Nuveen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt and Nuveen Select.
Diversification Opportunities for Nuveen Amt and Nuveen Select
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Nuveen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free and Nuveen Select Maturities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Maturities and Nuveen Amt 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 are associated (or correlated) with Nuveen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Maturities has no effect on the direction of Nuveen Amt i.e., Nuveen Amt and Nuveen Select go up and down completely randomly.
Pair Corralation between Nuveen Amt and Nuveen Select
Considering the 90-day investment horizon Nuveen Amt Free is expected to generate 1.88 times more return on investment than Nuveen Select. However, Nuveen Amt is 1.88 times more volatile than Nuveen Select Maturities. It trades about -0.01 of its potential returns per unit of risk. Nuveen Select Maturities is currently generating about -0.12 per unit of risk. If you would invest 1,323 in Nuveen Amt Free on August 30, 2024 and sell it today you would lose (10.00) from holding Nuveen Amt Free or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Amt Free vs. Nuveen Select Maturities
Performance |
| Timeline |
| Nuveen Amt Free |
| Nuveen Select Maturities |
Nuveen Amt and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Amt and Nuveen Select
The main advantage of trading using opposite Nuveen Amt and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt position performs unexpectedly, Nuveen Select 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 Select will offset losses from the drop in Nuveen Select's long position.| Nuveen Amt vs. Nuveen Amt Free Municipal | Nuveen Amt vs. Nuveen Dividend Advantage | Nuveen Amt vs. Nuveen Municipal High | Nuveen Amt vs. Nuveen Municipal Value |
| Nuveen Select vs. Gabelli Global Small | Nuveen Select vs. MFS Investment Grade | Nuveen Select vs. Eaton Vance National | Nuveen Select vs. GAMCO Natural Resources |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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