Correlation Between Nasdaq-100(r) and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100(r) and Nuveen Preferred 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(r) and Nuveen Preferred 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 Preferred And, you can compare the effects of market volatilities on Nasdaq-100(r) and Nuveen Preferred 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(r) with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100(r) and Nuveen Preferred.
Diversification Opportunities for Nasdaq-100(r) and Nuveen Preferred
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq-100(r) and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Nuveen Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred And and Nasdaq-100(r) 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 Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred And has no effect on the direction of Nasdaq-100(r) i.e., Nasdaq-100(r) and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Nasdaq-100(r) and Nuveen Preferred
If you would invest 22,539 in Nasdaq 100 2x Strategy on November 19, 2024 and sell it today you would earn a total of 37,730 from holding Nasdaq 100 2x Strategy or generate 167.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Nuveen Preferred And
Performance |
| Timeline |
| Nasdaq 100 2x |
| Nuveen Preferred And |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nasdaq-100(r) and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100(r) and Nuveen Preferred
The main advantage of trading using opposite Nasdaq-100(r) and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100(r) position performs unexpectedly, Nuveen Preferred 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 Preferred will offset losses from the drop in Nuveen Preferred's long position.| Nasdaq-100(r) vs. Sp 500 2x | Nasdaq-100(r) vs. Inverse Nasdaq 100 2x | Nasdaq-100(r) vs. Inverse Sp 500 | Nasdaq-100(r) vs. Ultra Nasdaq 100 Profunds |
| Nuveen Preferred vs. MFS Investment Grade | Nuveen Preferred vs. Eaton Vance National | Nuveen Preferred vs. Nuveen California Select | Nuveen Preferred vs. Federated Premier Municipal |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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