Correlation Between Nuveen California and KS Bancorp
Can any of the company-specific risk be diversified away by investing in both Nuveen California and KS Bancorp 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 KS Bancorp 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 KS Bancorp, you can compare the effects of market volatilities on Nuveen California and KS Bancorp 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 KS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and KS Bancorp.
Diversification Opportunities for Nuveen California and KS Bancorp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nuveen and KSBI is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Select and KS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KS Bancorp 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 KS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KS Bancorp has no effect on the direction of Nuveen California i.e., Nuveen California and KS Bancorp go up and down completely randomly.
Pair Corralation between Nuveen California and KS Bancorp
Considering the 90-day investment horizon Nuveen California is expected to generate 10.99 times less return on investment than KS Bancorp. But when comparing it to its historical volatility, Nuveen California Select is 1.34 times less risky than KS Bancorp. It trades about 0.05 of its potential returns per unit of risk. KS Bancorp is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 4,949 in KS Bancorp on November 28, 2024 and sell it today you would earn a total of 251.00 from holding KS Bancorp or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Nuveen California Select vs. KS Bancorp
Performance |
| Timeline |
| Nuveen California Select |
| KS Bancorp |
Nuveen California and KS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen California and KS Bancorp
The main advantage of trading using opposite Nuveen California and KS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, KS Bancorp 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 KS Bancorp will offset losses from the drop in KS Bancorp's long position.| Nuveen California vs. Eaton Vance National | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade | Nuveen California vs. Federated Premier Municipal |
| KS Bancorp vs. Carter Bank and | KS Bancorp vs. Blue Ridge Bankshares | KS Bancorp vs. First Bancorp | KS Bancorp vs. Truist Financial Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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