Correlation Between American Funds and Nuveen All-american
Can any of the company-specific risk be diversified away by investing in both American Funds and Nuveen All-american 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 American Funds and Nuveen All-american into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Retirement and Nuveen All American Municipal, you can compare the effects of market volatilities on American Funds and Nuveen All-american 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 American Funds with a short position of Nuveen All-american. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Nuveen All-american.
Diversification Opportunities for American Funds and Nuveen All-american
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Nuveen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Retirement and Nuveen All American Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen All American and American Funds 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 American Funds Retirement are associated (or correlated) with Nuveen All-american. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen All American has no effect on the direction of American Funds i.e., American Funds and Nuveen All-american go up and down completely randomly.
Pair Corralation between American Funds and Nuveen All-american
Assuming the 90 days horizon American Funds Retirement is expected to generate 1.02 times more return on investment than Nuveen All-american. However, American Funds is 1.02 times more volatile than Nuveen All American Municipal. It trades about 0.25 of its potential returns per unit of risk. Nuveen All American Municipal is currently generating about 0.24 per unit of risk. If you would invest 1,262 in American Funds Retirement on September 2, 2024 and sell it today you would earn a total of 23.00 from holding American Funds Retirement or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Retirement vs. Nuveen All American Municipal
Performance |
| Timeline |
| American Funds Retirement |
| Nuveen All American |
American Funds and Nuveen All-american Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Nuveen All-american
The main advantage of trading using opposite American Funds and Nuveen All-american positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Nuveen All-american 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 All-american will offset losses from the drop in Nuveen All-american's long position.| American Funds vs. Shelton Emerging Markets | American Funds vs. Pnc Emerging Markets | American Funds vs. Dws Emerging Markets | American Funds vs. Doubleline Emerging Markets |
| Nuveen All-american vs. Franklin Lifesmart Retirement | Nuveen All-american vs. Pro Blend Moderate Term | Nuveen All-american vs. Saat Moderate Strategy | Nuveen All-american vs. American Funds Retirement |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |