Correlation Between Nuveen Winslow and American Mutual
Can any of the company-specific risk be diversified away by investing in both Nuveen Winslow and American Mutual 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 Winslow and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Winslow Large Cap and American Mutual Fund, you can compare the effects of market volatilities on Nuveen Winslow and American Mutual 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 Winslow with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Winslow and American Mutual.
Diversification Opportunities for Nuveen Winslow and American Mutual
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NUVEEN and American is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Nuveen Winslow 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 Winslow Large Cap are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and American Mutual go up and down completely randomly.
Pair Corralation between Nuveen Winslow and American Mutual
Assuming the 90 days horizon Nuveen Winslow Large Cap is expected to generate 1.79 times more return on investment than American Mutual. However, Nuveen Winslow is 1.79 times more volatile than American Mutual Fund. It trades about 0.12 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.12 per unit of risk. If you would invest 6,243 in Nuveen Winslow Large Cap on August 28, 2024 and sell it today you would earn a total of 193.00 from holding Nuveen Winslow Large Cap or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuveen Winslow Large Cap vs. American Mutual Fund
Performance |
| Timeline |
| Nuveen Winslow Large |
| American Mutual |
Nuveen Winslow and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Winslow and American Mutual
The main advantage of trading using opposite Nuveen Winslow and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Winslow position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Nuveen Winslow vs. Massmutual Premier Diversified | Nuveen Winslow vs. Adams Diversified Equity | Nuveen Winslow vs. Delaware Limited Term Diversified | Nuveen Winslow vs. Pgim Conservative Retirement |
| American Mutual vs. Dws Government Money | American Mutual vs. Nuveen All American Municipal | American Mutual vs. Oklahoma Municipal Fund | American Mutual vs. Vanguard Short Term Government |
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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