Correlation Between Platinum Asia and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Platinum Asia and Nuveen Amt-free 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 Platinum Asia and Nuveen Amt-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Asia Investments and Nuveen Amt Free Municipal, you can compare the effects of market volatilities on Platinum Asia and Nuveen Amt-free 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 Platinum Asia with a short position of Nuveen Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Asia and Nuveen Amt-free.
Diversification Opportunities for Platinum Asia and Nuveen Amt-free
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Platinum and Nuveen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Asia Investments and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free and Platinum Asia 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 Platinum Asia Investments are associated (or correlated) with Nuveen Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Platinum Asia i.e., Platinum Asia and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Platinum Asia and Nuveen Amt-free
Considering the 90-day investment horizon Platinum Asia Investments is expected to generate 1.4 times more return on investment than Nuveen Amt-free. However, Platinum Asia is 1.4 times more volatile than Nuveen Amt Free Municipal. It trades about 0.36 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.15 per unit of risk. If you would invest 1,225 in Platinum Asia Investments on November 2, 2024 and sell it today you would earn a total of 42.00 from holding Platinum Asia Investments or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Asia Investments vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Platinum Asia Investments |
| Nuveen Amt Free |
Platinum Asia and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Asia and Nuveen Amt-free
The main advantage of trading using opposite Platinum Asia and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Asia position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free's long position.| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
| Nuveen Amt-free vs. Nuveen New York | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Pimco New York | Nuveen Amt-free vs. Nuveen Municipalome |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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