Correlation Between Nuveen New and Highland Long/short
Can any of the company-specific risk be diversified away by investing in both Nuveen New and Highland Long/short 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 New and Highland Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen New Jersey and Highland Longshort Healthcare, you can compare the effects of market volatilities on Nuveen New and Highland Long/short 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 New with a short position of Highland Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Highland Long/short.
Diversification Opportunities for Nuveen New and Highland Long/short
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Highland is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Highland Longshort Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Long/short and Nuveen New 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 New Jersey are associated (or correlated) with Highland Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Long/short has no effect on the direction of Nuveen New i.e., Nuveen New and Highland Long/short go up and down completely randomly.
Pair Corralation between Nuveen New and Highland Long/short
Assuming the 90 days horizon Nuveen New Jersey is expected to generate 2.55 times more return on investment than Highland Long/short. However, Nuveen New is 2.55 times more volatile than Highland Longshort Healthcare. It trades about 0.07 of its potential returns per unit of risk. Highland Longshort Healthcare is currently generating about 0.11 per unit of risk. If you would invest 1,339 in Nuveen New Jersey on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Nuveen New Jersey or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New Jersey vs. Highland Longshort Healthcare
Performance |
| Timeline |
| Nuveen New Jersey |
| Highland Long/short |
Nuveen New and Highland Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and Highland Long/short
The main advantage of trading using opposite Nuveen New and Highland Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, Highland Long/short 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 Highland Long/short will offset losses from the drop in Highland Long/short's long position.| Nuveen New vs. Arrow Managed Futures | Nuveen New vs. Vy Blackrock Inflation | Nuveen New vs. Deutsche Global Inflation | Nuveen New vs. Ab Municipal Bond |
| Highland Long/short vs. Highland Merger Arbitrage | Highland Long/short vs. Highland Small Cap Equity | Highland Long/short vs. Highland Small Cap Equity | Highland Long/short vs. Highland Small Cap Equity |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |