Correlation Between NYSE Composite and Nuveen Santa
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Nuveen Santa 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 Santa 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 Santa Barbara, you can compare the effects of market volatilities on NYSE Composite and Nuveen Santa 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 Santa. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Nuveen Santa.
Diversification Opportunities for NYSE Composite and Nuveen Santa
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Nuveen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Nuveen Santa Barbara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Santa Barbara 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 Santa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Santa Barbara has no effect on the direction of NYSE Composite i.e., NYSE Composite and Nuveen Santa go up and down completely randomly.
Pair Corralation between NYSE Composite and Nuveen Santa
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Nuveen Santa. In addition to that, NYSE Composite is 1.01 times more volatile than Nuveen Santa Barbara. It trades about -0.09 of its total potential returns per unit of risk. Nuveen Santa Barbara is currently generating about -0.04 per unit of volatility. If you would invest 6,007 in Nuveen Santa Barbara on January 14, 2025 and sell it today you would lose (165.00) from holding Nuveen Santa Barbara or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Nuveen Santa Barbara
Performance |
| Timeline |
NYSE Composite and Nuveen Santa Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Nuveen Santa Barbara
Pair trading matchups for Nuveen Santa
Pair Trading with NYSE Composite and Nuveen Santa
The main advantage of trading using opposite NYSE Composite and Nuveen Santa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Nuveen Santa 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 Santa will offset losses from the drop in Nuveen Santa's long position.| NYSE Composite vs. Vinci Partners Investments | NYSE Composite vs. Gladstone Investment | NYSE Composite vs. Greentown Management Holdings | NYSE Composite vs. Avient Corp |
| Nuveen Santa vs. Lord Abbett Convertible | Nuveen Santa vs. Absolute Convertible Arbitrage | Nuveen Santa vs. Putnam Convertible Securities | Nuveen Santa vs. Columbia Convertible Securities |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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