Correlation Between XAI Octagon and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both XAI Octagon and Nuveen Amt-free 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 XAI Octagon and Nuveen Amt-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Nuveen Amt Free Municipal, you can compare the effects of market volatilities on XAI Octagon and Nuveen Amt-free 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 XAI Octagon with a short position of Nuveen Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Nuveen Amt-free.
Diversification Opportunities for XAI Octagon and Nuveen Amt-free
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between XAI and Nuveen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free and XAI Octagon 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 XAI Octagon Floating are associated (or correlated) with Nuveen Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of XAI Octagon i.e., XAI Octagon and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between XAI Octagon and Nuveen Amt-free
Given the investment horizon of 90 days XAI Octagon Floating is expected to generate about the same return on investment as Nuveen Amt Free Municipal. However, XAI Octagon is 1.16 times more volatile than Nuveen Amt Free Municipal. It trades about 0.11 of its potential returns per unit of risk. Nuveen Amt Free Municipal is currently producing about 0.12 per unit of risk. If you would invest 1,014 in Nuveen Amt Free Municipal on September 4, 2024 and sell it today you would earn a total of 176.00 from holding Nuveen Amt Free Municipal or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| XAI Octagon Floating |
| Nuveen Amt Free |
XAI Octagon and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Nuveen Amt-free
The main advantage of trading using opposite XAI Octagon and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free's long position.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| Nuveen Amt-free vs. Nuveen Municipal Credit | Nuveen Amt-free vs. Nuveen Amt Free | Nuveen Amt-free vs. Nuveen Municipal Value | Nuveen Amt-free vs. Nuveen Municipal High |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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