Correlation Between Stifel Financial and Nuveen Dynamic
Can any of the company-specific risk be diversified away by investing in both Stifel Financial and Nuveen Dynamic 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 Stifel Financial and Nuveen Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Nuveen Dynamic Municipal, you can compare the effects of market volatilities on Stifel Financial and Nuveen Dynamic 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 Stifel Financial with a short position of Nuveen Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Nuveen Dynamic.
Diversification Opportunities for Stifel Financial and Nuveen Dynamic
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stifel and Nuveen is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial and Nuveen Dynamic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Dynamic Municipal and Stifel Financial 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 Stifel Financial are associated (or correlated) with Nuveen Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Dynamic Municipal has no effect on the direction of Stifel Financial i.e., Stifel Financial and Nuveen Dynamic go up and down completely randomly.
Pair Corralation between Stifel Financial and Nuveen Dynamic
Allowing for the 90-day total investment horizon Stifel Financial is expected to under-perform the Nuveen Dynamic. In addition to that, Stifel Financial is 1.5 times more volatile than Nuveen Dynamic Municipal. It trades about -0.27 of its total potential returns per unit of risk. Nuveen Dynamic Municipal is currently generating about -0.19 per unit of volatility. If you would invest 1,058 in Nuveen Dynamic Municipal on September 18, 2024 and sell it today you would lose (30.00) from holding Nuveen Dynamic Municipal or give up 2.84% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Stifel Financial vs. Nuveen Dynamic Municipal
Performance |
Timeline |
Stifel Financial |
Nuveen Dynamic Municipal |
Stifel Financial and Nuveen Dynamic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stifel Financial and Nuveen Dynamic
The main advantage of trading using opposite Stifel Financial and Nuveen Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial position performs unexpectedly, Nuveen Dynamic 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 Dynamic will offset losses from the drop in Nuveen Dynamic's long position.Stifel Financial vs. Scully Royalty | Stifel Financial vs. Mercurity Fintech Holding | Stifel Financial vs. Donnelley Financial Solutions | Stifel Financial vs. CreditRiskMonitorCom |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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