Correlation Between Standard Life and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both Standard Life and Nuveen Global 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 Standard Life and Nuveen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Life Aberdeen and Nuveen Global High, you can compare the effects of market volatilities on Standard Life and Nuveen Global 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 Standard Life with a short position of Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Life and Nuveen Global.
Diversification Opportunities for Standard Life and Nuveen Global
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Standard and Nuveen is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Standard Life Aberdeen and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High and Standard Life 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 Standard Life Aberdeen are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of Standard Life i.e., Standard Life and Nuveen Global go up and down completely randomly.
Pair Corralation between Standard Life and Nuveen Global
Assuming the 90 days horizon Standard Life is expected to generate 6.36 times less return on investment than Nuveen Global. In addition to that, Standard Life is 2.0 times more volatile than Nuveen Global High. It trades about 0.02 of its total potential returns per unit of risk. Nuveen Global High is currently generating about 0.27 per unit of volatility. If you would invest 1,303 in Nuveen Global High on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Nuveen Global High or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Life Aberdeen vs. Nuveen Global High
Performance |
| Timeline |
| Standard Life Aberdeen |
| Nuveen Global High |
Standard Life and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Life and Nuveen Global
The main advantage of trading using opposite Standard Life and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Life position performs unexpectedly, Nuveen Global 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 Global will offset losses from the drop in Nuveen Global's long position.| Standard Life vs. Nuveen Global High | Standard Life vs. New America High | Standard Life vs. Brookfield Business Corp | Standard Life vs. Elysee Development Corp |
| Nuveen Global vs. Advent Claymore Convertible | Nuveen Global vs. Blackstone Gso Strategic | Nuveen Global vs. Western Asset Investment | Nuveen Global vs. Pioneer Floating Rate |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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