Correlation Between Nuveen SP and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Nuveen SP and Columbia Seligman 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 Nuveen SP and Columbia Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen SP 500 and Columbia Seligman Premium, you can compare the effects of market volatilities on Nuveen SP and Columbia Seligman 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 Nuveen SP with a short position of Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen SP and Columbia Seligman.
Diversification Opportunities for Nuveen SP and Columbia Seligman
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Columbia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen SP 500 and Columbia Seligman Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Premium and Nuveen SP 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 Nuveen SP 500 are associated (or correlated) with Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman Premium has no effect on the direction of Nuveen SP i.e., Nuveen SP and Columbia Seligman go up and down completely randomly.
Pair Corralation between Nuveen SP and Columbia Seligman
Given the investment horizon of 90 days Nuveen SP is expected to generate 1.06 times less return on investment than Columbia Seligman. But when comparing it to its historical volatility, Nuveen SP 500 is 1.7 times less risky than Columbia Seligman. It trades about 0.12 of its potential returns per unit of risk. Columbia Seligman Premium is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,935 in Columbia Seligman Premium on September 14, 2024 and sell it today you would earn a total of 656.00 from holding Columbia Seligman Premium or generate 22.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen SP 500 vs. Columbia Seligman Premium
Performance |
| Timeline |
| Nuveen SP 500 |
| Columbia Seligman Premium |
Nuveen SP and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen SP and Columbia Seligman
The main advantage of trading using opposite Nuveen SP and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen SP position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman's long position.| Nuveen SP vs. Nuveen SP 500 | Nuveen SP vs. Voya Global Equity | Nuveen SP vs. Nuveen NASDAQ 100 | Nuveen SP vs. Nuveen Real Asset |
| Columbia Seligman vs. Eaton Vance Enhanced | Columbia Seligman vs. BlackRock Utility Infrastructure | Columbia Seligman vs. BlackRock Health Sciences | Columbia Seligman vs. BlackRock Science Tech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |