Correlation Between Nuveen Winslow and Nuveen Nebraska

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

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

Diversification Opportunities for Nuveen Winslow and Nuveen Nebraska

-0.31

Correlation Coefficient

Nuveen Winslow  Nuveen Nebraska

Very good diversification

The 3 months correlation between Nuveen and Nuveen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and Nuveen Nebraska Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Nebraska Municipal and Nuveen Winslow 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 Winslow Large Cap are associated (or correlated) with Nuveen Nebraska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Nebraska Municipal has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and Nuveen Nebraska go up and down completely randomly.

Pair Corralation between Nuveen Winslow and Nuveen Nebraska

Assuming the 90 days horizon Nuveen Winslow Large Cap is expected to generate 3.68 times more return on investment than Nuveen Nebraska. However, Nuveen Winslow is 3.68 times more volatile than Nuveen Nebraska Municipal. It trades about 0.17 of its potential returns per unit of risk. Nuveen Nebraska Municipal is currently generating about 0.07 per unit of risk. If you would invest  5,815  in Nuveen Winslow Large Cap on September 2, 2024 and sell it today you would earn a total of  670.00  from holding Nuveen Winslow Large Cap or generate 11.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nuveen Winslow Large Cap  vs.  Nuveen Nebraska Municipal

Nuveen Winslow Large

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Winslow Large Cap are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nuveen Winslow may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Nuveen Nebraska Municipal

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Nebraska Municipal are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Nuveen Nebraska 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 Winslow and Nuveen Nebraska

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

The idea behind Nuveen Winslow Large Cap and Nuveen Nebraska 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.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.