Correlation Between Global X and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SuperIncome and Nuveen Preferred and, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Nuveen Preferred.
Diversification Opportunities for Global X and Nuveen Preferred
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Nuveen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Global X SuperIncome and Nuveen Preferred and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred and Global X 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 Global X SuperIncome 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 has no effect on the direction of Global X i.e., Global X and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Global X and Nuveen Preferred
Given the investment horizon of 90 days Global X SuperIncome is expected to generate 3.63 times more return on investment than Nuveen Preferred. However, Global X is 3.63 times more volatile than Nuveen Preferred and. It trades about 0.22 of its potential returns per unit of risk. Nuveen Preferred and is currently generating about 0.16 per unit of risk. If you would invest 961.00 in Global X SuperIncome on September 3, 2024 and sell it today you would earn a total of 21.00 from holding Global X SuperIncome or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X SuperIncome vs. Nuveen Preferred and
Performance |
| Timeline |
| Global X SuperIncome |
| Nuveen Preferred |
Global X and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Nuveen Preferred
The main advantage of trading using opposite Global X and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Invesco Preferred ETF | Global X vs. iShares Preferred and | Global X vs. SPDR ICE Preferred | Global X vs. VanEck Preferred Securities |
| Nuveen Preferred vs. First Trust Dorsey | Nuveen Preferred vs. Direxion Daily MSCI | Nuveen Preferred vs. MFUT | Nuveen Preferred vs. VanEck Morningstar Wide |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |