Correlation Between Nuveen New and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Nuveen New and Eagle Small 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 Eagle Small 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 Eagle Small Cap, you can compare the effects of market volatilities on Nuveen New and Eagle Small 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Eagle Small.
Diversification Opportunities for Nuveen New and Eagle Small
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuveen and Eagle is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap 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 Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Nuveen New i.e., Nuveen New and Eagle Small go up and down completely randomly.
Pair Corralation between Nuveen New and Eagle Small
Assuming the 90 days horizon Nuveen New is expected to generate 8.36 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Nuveen New Jersey is 2.58 times less risky than Eagle Small. It trades about 0.07 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,536 in Eagle Small Cap on August 28, 2024 and sell it today you would earn a total of 181.00 from holding Eagle Small Cap or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen New Jersey vs. Eagle Small Cap
Performance |
| Timeline |
| Nuveen New Jersey |
| Eagle Small Cap |
Nuveen New and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen New and Eagle Small
The main advantage of trading using opposite Nuveen New and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen New position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Nuveen New vs. Blackrock Funds Iii | Nuveen New vs. Usaa Mutual Funds | Nuveen New vs. Chestnut Street Exchange | Nuveen New vs. Cref Money Market |
| Eagle Small vs. Pgim Jennison Technology | Eagle Small vs. Janus Global Technology | Eagle Small vs. Towpath Technology | Eagle Small vs. Biotechnology Ultrasector Profund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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