Correlation Between Nuveen California and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Juniata Valley 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 Juniata Valley 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 Juniata Valley Financial, you can compare the effects of market volatilities on Nuveen California and Juniata Valley 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 Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Juniata Valley.
Diversification Opportunities for Nuveen California and Juniata Valley
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Juniata is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Select and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial 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 Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of Nuveen California i.e., Nuveen California and Juniata Valley go up and down completely randomly.
Pair Corralation between Nuveen California and Juniata Valley
Considering the 90-day investment horizon Nuveen California is expected to generate 35.16 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Nuveen California Select is 2.81 times less risky than Juniata Valley. It trades about 0.02 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,226 in Juniata Valley Financial on September 1, 2024 and sell it today you would earn a total of 124.00 from holding Juniata Valley Financial or generate 10.11% 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. Juniata Valley Financial
Performance |
| Timeline |
| Nuveen California Select |
| Juniata Valley Financial |
Nuveen California and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and Juniata Valley
The main advantage of trading using opposite Nuveen California and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's 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 |
| Juniata Valley vs. HUMANA INC | Juniata Valley vs. SCOR PK | Juniata Valley vs. Aquagold International | Juniata Valley vs. Thrivent High Yield |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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