Correlation Between Nasdaq 100 and Nuveen Real
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Nuveen Real 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 Nasdaq 100 and Nuveen Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Nuveen Real Estate, you can compare the effects of market volatilities on Nasdaq 100 and Nuveen Real 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 Nasdaq 100 with a short position of Nuveen Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Nuveen Real.
Diversification Opportunities for Nasdaq 100 and Nuveen Real
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nasdaq and Nuveen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Nuveen Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Estate and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Estate has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Nuveen Real go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Nuveen Real
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.42 times more return on investment than Nuveen Real. However, Nasdaq 100 is 2.42 times more volatile than Nuveen Real Estate. It trades about 0.15 of its potential returns per unit of risk. Nuveen Real Estate is currently generating about -0.04 per unit of risk. If you would invest 36,655 in Nasdaq 100 2x Strategy on September 12, 2024 and sell it today you would earn a total of 6,762 from holding Nasdaq 100 2x Strategy or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Nuveen Real Estate
Performance |
| Timeline |
| Nasdaq 100 2x |
| Nuveen Real Estate |
Nasdaq 100 and Nuveen Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Nuveen Real
The main advantage of trading using opposite Nasdaq 100 and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Nuveen Real 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 Real will offset losses from the drop in Nuveen Real's long position.| Nasdaq 100 vs. Ambrus Core Bond | Nasdaq 100 vs. Pace High Yield | Nasdaq 100 vs. Franklin High Yield | Nasdaq 100 vs. The National Tax Free |
| Nuveen Real vs. Dreyfusstandish Global Fixed | Nuveen Real vs. Dws Government Money | Nuveen Real vs. Morningstar Defensive Bond | Nuveen Real vs. Doubleline Yield Opportunities |
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
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |