Correlation Between BBX Capital and Nuveen Short

Can any of the company-specific risk be diversified away by investing in both BBX 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 BBX 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 BBX Capital and Nuveen Short Duration, you can compare the effects of market volatilities on BBX 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 BBX Capital with a short position of Nuveen Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBX Capital and Nuveen Short.

Diversification Opportunities for BBX Capital and Nuveen Short

0.0

Correlation Coefficient

BBX Capital  Nuveen Short

Pay attention - limited upside

The 3 months correlation between BBX and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BBX Capital 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 BBX 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 BBX Capital 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 BBX Capital i.e., BBX Capital and Nuveen Short go up and down completely randomly.

Pair Corralation between BBX Capital and Nuveen Short

If you would invest (100.00) in Nuveen Short Duration on December 17, 2024 and sell it today you would earn a total of  100.00  from holding Nuveen Short Duration or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BBX Capital  vs.  Nuveen Short Duration

BBX Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days BBX Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Nuveen Short Duration

Risk-Adjusted Performance

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 BBX Capital and Nuveen Short

The main advantage of trading using opposite BBX Capital and Nuveen Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBX 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 BBX Capital 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.