Correlation Between Us Global and Nuveen Santa
Can any of the company-specific risk be diversified away by investing in both Us Global and Nuveen Santa 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 Us Global and Nuveen Santa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Global Investors and Nuveen Santa Barbara, you can compare the effects of market volatilities on Us Global and Nuveen Santa 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 Us Global with a short position of Nuveen Santa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Global and Nuveen Santa.
Diversification Opportunities for Us Global and Nuveen Santa
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USLUX and Nuveen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Investors and Nuveen Santa Barbara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Santa Barbara and Us Global 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 Us Global Investors are associated (or correlated) with Nuveen Santa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Santa Barbara has no effect on the direction of Us Global i.e., Us Global and Nuveen Santa go up and down completely randomly.
Pair Corralation between Us Global and Nuveen Santa
Assuming the 90 days horizon Us Global Investors is expected to generate 1.32 times more return on investment than Nuveen Santa. However, Us Global is 1.32 times more volatile than Nuveen Santa Barbara. It trades about 0.26 of its potential returns per unit of risk. Nuveen Santa Barbara is currently generating about 0.02 per unit of risk. If you would invest 2,021 in Us Global Investors on October 24, 2024 and sell it today you would earn a total of 84.00 from holding Us Global Investors or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Global Investors vs. Nuveen Santa Barbara
Performance |
| Timeline |
| Us Global Investors |
| Nuveen Santa Barbara |
Us Global and Nuveen Santa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Global and Nuveen Santa
The main advantage of trading using opposite Us Global and Nuveen Santa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Global position performs unexpectedly, Nuveen Santa 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 Santa will offset losses from the drop in Nuveen Santa's long position.| Us Global vs. Barings High Yield | Us Global vs. Siit High Yield | Us Global vs. Federated High Yield | Us Global vs. Prudential High Yield |
| Nuveen Santa vs. Morningstar Global Income | Nuveen Santa vs. Gmo Global Equity | Nuveen Santa vs. Us Global Investors | Nuveen Santa vs. Kinetics Global 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |