Correlation Between Nuveen Symphony and Nuveen High

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

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

Diversification Opportunities for Nuveen Symphony and Nuveen High

0.9

Correlation Coefficient

Nuveen Symphony  Nuveen High

Almost no diversification

The 3 months correlation between Nuveen and Nuveen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Symphony Floating and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Income and Nuveen Symphony 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 Symphony Floating are associated (or correlated) with Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Income has no effect on the direction of Nuveen Symphony i.e., Nuveen Symphony and Nuveen High go up and down completely randomly.

Pair Corralation between Nuveen Symphony and Nuveen High

Assuming the 90 days horizon Nuveen Symphony is expected to generate 1.25 times less return on investment than Nuveen High. But when comparing it to its historical volatility, Nuveen Symphony Floating is 1.5 times less risky than Nuveen High. It trades about 0.24 of its potential returns per unit of risk. Nuveen High Income is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  566.00  in Nuveen High Income on September 13, 2024 and sell it today you would earn a total of  113.00  from holding Nuveen High Income or generate 19.96% return on investment over 90 days.

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

Nuveen Symphony Floating  vs.  Nuveen High Income

Nuveen Symphony Floating

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Symphony Floating are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Nuveen Symphony is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen High Income

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen High Income are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nuveen High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen Symphony and Nuveen High

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

The idea behind Nuveen Symphony Floating and Nuveen High Income 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.