Correlation Between Nuveen California and American Business
Can any of the company-specific risk be diversified away by investing in both Nuveen California and American Business 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 California and American Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen California Select and American Business Bk, you can compare the effects of market volatilities on Nuveen California and American Business 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 California with a short position of American Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and American Business.
Diversification Opportunities for Nuveen California and American Business
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and American is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Select and American Business Bk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Business and Nuveen California 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 California Select are associated (or correlated) with American Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Business has no effect on the direction of Nuveen California i.e., Nuveen California and American Business go up and down completely randomly.
Pair Corralation between Nuveen California and American Business
Considering the 90-day investment horizon Nuveen California is expected to generate 159.94 times less return on investment than American Business. But when comparing it to its historical volatility, Nuveen California Select is 1.21 times less risky than American Business. It trades about 0.0 of its potential returns per unit of risk. American Business Bk is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 4,024 in American Business Bk on September 2, 2024 and sell it today you would earn a total of 451.00 from holding American Business Bk or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen California Select vs. American Business Bk
Performance |
| Timeline |
| Nuveen California Select |
| American Business |
Nuveen California and American Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and American Business
The main advantage of trading using opposite Nuveen California and American Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, American Business 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 Business will offset losses from the drop in American Business' long position.| Nuveen California vs. Eaton Vance National | Nuveen California vs. Invesco High Income | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade |
| American Business vs. Private Bancorp of | American Business vs. Avidbank Holdings | American Business vs. Century Next Financial | American Business vs. American Riviera Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |