Correlation Between Nuveen Winslow and AdvisorShares

Can any of the company-specific risk be diversified away by investing in both Nuveen Winslow and AdvisorShares 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 AdvisorShares 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 AdvisorShares Q Dynamic, you can compare the effects of market volatilities on Nuveen Winslow and AdvisorShares 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 AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Winslow and AdvisorShares.

Diversification Opportunities for Nuveen Winslow and AdvisorShares

0.92

Correlation Coefficient

Nuveen Winslow  AdvisorShares

Almost no diversification

The 3 months correlation between Nuveen and AdvisorShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and AdvisorShares Q Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Q Dynamic 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 AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Q Dynamic has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and AdvisorShares go up and down completely randomly.

Pair Corralation between Nuveen Winslow and AdvisorShares

Given the investment horizon of 90 days Nuveen Winslow Large Cap is expected to generate 1.36 times more return on investment than AdvisorShares. However, Nuveen Winslow is 1.36 times more volatile than AdvisorShares Q Dynamic. It trades about 0.15 of its potential returns per unit of risk. AdvisorShares Q Dynamic is currently generating about 0.17 per unit of risk. If you would invest  3,142  in Nuveen Winslow Large Cap on September 13, 2024 and sell it today you would earn a total of  296.00  from holding Nuveen Winslow Large Cap or generate 9.42% return on investment over 90 days.

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

Nuveen Winslow Large Cap  vs.  AdvisorShares Q Dynamic

Nuveen Winslow Large

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Winslow Large Cap are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Nuveen Winslow may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AdvisorShares Q Dynamic

Risk-Adjusted Performance

13 of 100

Good

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

Pair Trading with Nuveen Winslow and AdvisorShares

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

The idea behind Nuveen Winslow Large Cap and AdvisorShares Q Dynamic 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.