Correlation Between NYSE Composite and Nuveen Nebraska
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Nuveen Nebraska 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 NYSE Composite and Nuveen Nebraska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Nuveen Nebraska Municipal, you can compare the effects of market volatilities on NYSE Composite and Nuveen Nebraska 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 NYSE Composite with a short position of Nuveen Nebraska. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Nuveen Nebraska.
Diversification Opportunities for NYSE Composite and Nuveen Nebraska
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and Nuveen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Nuveen Nebraska Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Nebraska Municipal and NYSE Composite 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 NYSE Composite are associated (or correlated) with Nuveen Nebraska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Nebraska Municipal has no effect on the direction of NYSE Composite i.e., NYSE Composite and Nuveen Nebraska go up and down completely randomly.
Pair Corralation between NYSE Composite and Nuveen Nebraska
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.53 times more return on investment than Nuveen Nebraska. However, NYSE Composite is 2.53 times more volatile than Nuveen Nebraska Municipal. It trades about 0.09 of its potential returns per unit of risk. Nuveen Nebraska Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,626,371 in NYSE Composite on September 12, 2024 and sell it today you would earn a total of 361,819 from holding NYSE Composite or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Nuveen Nebraska Municipal
Performance |
| Timeline |
NYSE Composite and Nuveen Nebraska Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Nuveen Nebraska Municipal
Pair trading matchups for Nuveen Nebraska
Pair Trading with NYSE Composite and Nuveen Nebraska
The main advantage of trading using opposite NYSE Composite and Nuveen Nebraska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Nuveen Nebraska 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 Nebraska will offset losses from the drop in Nuveen Nebraska's long position.| NYSE Composite vs. Teleflex Incorporated | NYSE Composite vs. Victorias Secret Co | NYSE Composite vs. Under Armour C | NYSE Composite vs. Steven Madden |
| Nuveen Nebraska vs. Nuveen Symphony Floating | Nuveen Nebraska vs. Nuveen Dow 30 | Nuveen Nebraska vs. Nuveen Symphony Floating | Nuveen Nebraska vs. Nuveen Symphony Floating |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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