Correlation Between Nuveen New and Nuveen New

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

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

Diversification Opportunities for Nuveen New and Nuveen New

0.79

Correlation Coefficient

Nuveen New  Nuveen New

Poor diversification

The 3 months correlation between Nuveen and Nuveen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York and Nuveen New 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 New Jersey are associated (or correlated) with Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of Nuveen New i.e., Nuveen New and Nuveen New go up and down completely randomly.

Pair Corralation between Nuveen New and Nuveen New

Considering the 90-day investment horizon Nuveen New Jersey is expected to generate 1.36 times more return on investment than Nuveen New. However, Nuveen New is 1.36 times more volatile than Nuveen New York. It trades about -0.15 of its potential returns per unit of risk. Nuveen New York is currently generating about -0.29 per unit of risk. If you would invest  1,213  in Nuveen New Jersey on September 22, 2024 and sell it today you would lose (26.00) from holding Nuveen New Jersey or give up 2.14% of portfolio value over 90 days.

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

Nuveen New Jersey  vs.  Nuveen New York

Nuveen New Jersey

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen New Jersey has generated negative risk-adjusted returns adding no value to fund investors. Even with latest fragile performance, the Fund's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the fund stakeholders.

Nuveen New York

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen New York has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen New 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 New and Nuveen New

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

The idea behind Nuveen New Jersey and Nuveen New York 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.