Correlation Between Visa and Nuveen Nebraska
Can any of the company-specific risk be diversified away by investing in both Visa and Nuveen Nebraska 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 Visa and Nuveen Nebraska into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Nuveen Nebraska Municipal, you can compare the effects of market volatilities on Visa and Nuveen Nebraska 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 Visa with a short position of Nuveen Nebraska. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Nuveen Nebraska.
Diversification Opportunities for Visa and Nuveen Nebraska
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Nuveen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Nuveen Nebraska Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Nebraska Municipal and Visa 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 Visa Class A are associated (or correlated) with Nuveen Nebraska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Nebraska Municipal has no effect on the direction of Visa i.e., Visa and Nuveen Nebraska go up and down completely randomly.
Pair Corralation between Visa and Nuveen Nebraska
Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Nuveen Nebraska. In addition to that, Visa is 6.86 times more volatile than Nuveen Nebraska Municipal. It trades about -0.19 of its total potential returns per unit of risk. Nuveen Nebraska Municipal is currently generating about 0.02 per unit of volatility. If you would invest 973.00 in Nuveen Nebraska Municipal on January 5, 2025 and sell it today you would earn a total of 1.00 from holding Nuveen Nebraska Municipal or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Visa Class A vs. Nuveen Nebraska Municipal
Performance |
| Timeline |
| Visa Class A |
| Nuveen Nebraska Municipal |
Visa and Nuveen Nebraska Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Nuveen Nebraska
The main advantage of trading using opposite Visa and Nuveen Nebraska positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Nuveen Nebraska 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 Nebraska will offset losses from the drop in Nuveen Nebraska's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Nuveen Nebraska vs. Nuveen Small Cap | Nuveen Nebraska vs. Nuveen Real Estate | Nuveen Nebraska vs. Nuveen Real Estate | Nuveen Nebraska vs. Nuveen Preferred Securities |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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