Correlation Between Ameritrans Capital and Nuveen Short

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

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

Diversification Opportunities for Ameritrans Capital and Nuveen Short

-0.47

Correlation Coefficient

Ameritrans Capital  Nuveen Short

Very good diversification

The 3 months correlation between Ameritrans and Nuveen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrans Capital Corp and Nuveen Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Short Duration and Ameritrans Capital 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 Ameritrans Capital Corp are associated (or correlated) with Nuveen Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Short Duration has no effect on the direction of Ameritrans Capital i.e., Ameritrans Capital and Nuveen Short go up and down completely randomly.

Pair Corralation between Ameritrans Capital and Nuveen Short

If you would invest  1,153  in Nuveen Short Duration on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Nuveen Short Duration or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Ameritrans Capital Corp  vs.  Nuveen Short Duration

Ameritrans Capital Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrans Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Nuveen Short Duration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Short Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Nuveen Short is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ameritrans Capital and Nuveen Short

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

The idea behind Ameritrans Capital Corp and Nuveen Short Duration 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.