Correlation Between Carbon Streaming and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both Carbon Streaming and Nuveen Global 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 Carbon Streaming and Nuveen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carbon Streaming Corp and Nuveen Global High, you can compare the effects of market volatilities on Carbon Streaming and Nuveen Global 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 Carbon Streaming with a short position of Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carbon Streaming and Nuveen Global.
Diversification Opportunities for Carbon Streaming and Nuveen Global
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carbon and Nuveen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carbon Streaming Corp and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High and Carbon Streaming 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 Carbon Streaming Corp are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of Carbon Streaming i.e., Carbon Streaming and Nuveen Global go up and down completely randomly.
Pair Corralation between Carbon Streaming and Nuveen Global
Assuming the 90 days horizon Carbon Streaming Corp is expected to generate 13.42 times more return on investment than Nuveen Global. However, Carbon Streaming is 13.42 times more volatile than Nuveen Global High. It trades about 0.13 of its potential returns per unit of risk. Nuveen Global High is currently generating about 0.23 per unit of risk. If you would invest 33.00 in Carbon Streaming Corp on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Carbon Streaming Corp or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Carbon Streaming Corp vs. Nuveen Global High
Performance |
| Timeline |
| Carbon Streaming Corp |
| Nuveen Global High |
Carbon Streaming and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carbon Streaming and Nuveen Global
The main advantage of trading using opposite Carbon Streaming and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carbon Streaming position performs unexpectedly, Nuveen Global 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 Global will offset losses from the drop in Nuveen Global's long position.| Carbon Streaming vs. Elysee Development Corp | Carbon Streaming vs. Agronomics Limited | Carbon Streaming vs. Aimia Inc | Carbon Streaming vs. Azimut Holding SpA |
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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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