Correlation Between CBH and Nuveen Senior
Can any of the company-specific risk be diversified away by investing in both CBH and Nuveen Senior 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 CBH and Nuveen Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Nuveen Senior Income, you can compare the effects of market volatilities on CBH and Nuveen Senior 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 CBH with a short position of Nuveen Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Nuveen Senior.
Diversification Opportunities for CBH and Nuveen Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBH and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income and CBH 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 CBH are associated (or correlated) with Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of CBH i.e., CBH and Nuveen Senior go up and down completely randomly.
Pair Corralation between CBH and Nuveen Senior
If you would invest (100.00) in Nuveen Senior Income on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Nuveen Senior Income or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CBH vs. Nuveen Senior Income
Performance |
Timeline |
CBH |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Nuveen Senior Income |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CBH and Nuveen Senior Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CBH and Nuveen Senior
The main advantage of trading using opposite CBH and Nuveen Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Nuveen Senior 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 Senior will offset losses from the drop in Nuveen Senior's long position.CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
Nuveen Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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