Correlation Between SerenityShares and SPDR Nuveen

Can any of the company-specific risk be diversified away by investing in both SerenityShares and SPDR Nuveen 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 SerenityShares and SPDR Nuveen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SerenityShares and SPDR Nuveen Municipal, you can compare the effects of market volatilities on SerenityShares and SPDR Nuveen 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 SerenityShares with a short position of SPDR Nuveen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SerenityShares and SPDR Nuveen.

Diversification Opportunities for SerenityShares and SPDR Nuveen

0.0

Correlation Coefficient

SerenityShares  SPDR Nuveen

Pay attention - limited upside

The 3 months correlation between SerenityShares and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SerenityShares and SPDR Nuveen Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Nuveen Municipal and SerenityShares 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 SerenityShares are associated (or correlated) with SPDR Nuveen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Nuveen Municipal has no effect on the direction of SerenityShares i.e., SerenityShares and SPDR Nuveen go up and down completely randomly.

Pair Corralation between SerenityShares and SPDR Nuveen

If you would invest  2,758  in SPDR Nuveen Municipal on September 1, 2024 and sell it today you would earn a total of  34.00  from holding SPDR Nuveen Municipal or generate 1.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SerenityShares  vs.  SPDR Nuveen Municipal

SerenityShares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SerenityShares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, SerenityShares is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

SPDR Nuveen Municipal

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Nuveen Municipal are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, SPDR Nuveen is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SerenityShares and SPDR Nuveen

The main advantage of trading using opposite SerenityShares and SPDR Nuveen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SerenityShares position performs unexpectedly, SPDR Nuveen 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 SPDR Nuveen will offset losses from the drop in SPDR Nuveen's long position.

The idea behind SerenityShares and SPDR Nuveen Municipal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.