Correlation Between Nuveen Short and Nuveen Strategic
Can any of the company-specific risk be diversified away by investing in both Nuveen Short and Nuveen Strategic 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 Nuveen Strategic 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 Strategic Municipal, you can compare the effects of market volatilities on Nuveen Short and Nuveen Strategic 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 Nuveen Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Short and Nuveen Strategic.
Diversification Opportunities for Nuveen Short and Nuveen Strategic
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Nuveen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Duration High and Nuveen Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Strategic Mun 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 Duration High are associated (or correlated) with Nuveen Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Strategic Mun has no effect on the direction of Nuveen Short i.e., Nuveen Short and Nuveen Strategic go up and down completely randomly.
Pair Corralation between Nuveen Short and Nuveen Strategic
Assuming the 90 days horizon Nuveen Short is expected to generate 101.5 times less return on investment than Nuveen Strategic. But when comparing it to its historical volatility, Nuveen Short Duration High is 1.23 times less risky than Nuveen Strategic. It trades about 0.0 of its potential returns per unit of risk. Nuveen Strategic Municipal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 995.00 in Nuveen Strategic Municipal on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Nuveen Strategic Municipal or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Short Duration High vs. Nuveen Strategic Municipal
Performance |
| Timeline |
| Nuveen Short Duration |
| Nuveen Strategic Mun |
Nuveen Short and Nuveen Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Short and Nuveen Strategic
The main advantage of trading using opposite Nuveen Short and Nuveen Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short position performs unexpectedly, Nuveen Strategic 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 Strategic will offset losses from the drop in Nuveen Strategic's long position.| Nuveen Short vs. Lord Abbett Diversified | Nuveen Short vs. Gmo Quality Fund | Nuveen Short vs. Fulcrum Diversified Absolute | Nuveen Short vs. Jpmorgan Diversified Fund |
| Nuveen Strategic vs. Aqr Diversified Arbitrage | Nuveen Strategic vs. Fulcrum Diversified Absolute | Nuveen Strategic vs. Schwab Small Cap Index | Nuveen Strategic vs. Lord Abbett Diversified |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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