Correlation Between Nuveen Equity and Nuveen Equity

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

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

Diversification Opportunities for Nuveen Equity and Nuveen Equity

1.0

Correlation Coefficient

Nuveen Equity  Nuveen Equity

No risk reduction

The 3 months correlation between Nuveen and Nuveen is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Equity Longshort and Nuveen Equity Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Equity Longshort and Nuveen Equity 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 Equity Longshort are associated (or correlated) with Nuveen Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Equity Longshort has no effect on the direction of Nuveen Equity i.e., Nuveen Equity and Nuveen Equity go up and down completely randomly.

Pair Corralation between Nuveen Equity and Nuveen Equity

Assuming the 90 days horizon Nuveen Equity is expected to generate 1.02 times less return on investment than Nuveen Equity. But when comparing it to its historical volatility, Nuveen Equity Longshort is 1.0 times less risky than Nuveen Equity. It trades about 0.29 of its potential returns per unit of risk. Nuveen Equity Longshort is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  5,873  in Nuveen Equity Longshort on September 5, 2024 and sell it today you would earn a total of  615.00  from holding Nuveen Equity Longshort or generate 10.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Nuveen Equity Longshort  vs.  Nuveen Equity Longshort

Nuveen Equity Longshort

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Equity Longshort are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Nuveen Equity may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Nuveen Equity Longshort

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Equity Longshort are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Nuveen Equity may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nuveen Equity and Nuveen Equity

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

The idea behind Nuveen Equity Longshort and Nuveen Equity Longshort 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 Commodity Directory module to find actively traded commodities issued by global exchanges.