Correlation Between Growth Opportunities and Nuveen Winslow
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities and Nuveen Winslow 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 Growth Opportunities and Nuveen Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Opportunities Fund and Nuveen Winslow Large Cap, you can compare the effects of market volatilities on Growth Opportunities and Nuveen Winslow 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 Growth Opportunities with a short position of Nuveen Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Nuveen Winslow.
Diversification Opportunities for Growth Opportunities and Nuveen Winslow
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between GROWTH and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities Fund and Nuveen Winslow Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Winslow Large and Growth Opportunities 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 Growth Opportunities Fund are associated (or correlated) with Nuveen Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Winslow Large has no effect on the direction of Growth Opportunities i.e., Growth Opportunities and Nuveen Winslow go up and down completely randomly.
Pair Corralation between Growth Opportunities and Nuveen Winslow
Assuming the 90 days horizon Growth Opportunities Fund is expected to generate 0.99 times more return on investment than Nuveen Winslow. However, Growth Opportunities Fund is 1.01 times less risky than Nuveen Winslow. It trades about 0.34 of its potential returns per unit of risk. Nuveen Winslow Large Cap is currently generating about 0.29 per unit of risk. If you would invest 5,471 in Growth Opportunities Fund on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Growth Opportunities Fund or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Nuveen Winslow Large Cap
Performance |
| Timeline |
| Growth Opportunities |
| Nuveen Winslow Large |
Growth Opportunities and Nuveen Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Nuveen Winslow
The main advantage of trading using opposite Growth Opportunities and Nuveen Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities position performs unexpectedly, Nuveen Winslow 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 Winslow will offset losses from the drop in Nuveen Winslow's long position.| Growth Opportunities vs. Virtus Real Estate | Growth Opportunities vs. Prudential Real Estate | Growth Opportunities vs. Deutsche Real Estate | Growth Opportunities vs. Goldman Sachs Real |
| Nuveen Winslow vs. Chase Growth Fund | Nuveen Winslow vs. L Abbett Growth | Nuveen Winslow vs. Qs Growth Fund | Nuveen Winslow vs. Growth Opportunities Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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