Correlation Between Multi Manager and Nuveen Symphony

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

By analyzing existing cross correlation between Multi Manager Growth Strategies and Nuveen Symphony Floating, you can compare the effects of market volatilities on Multi Manager and Nuveen Symphony 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 Multi Manager with a short position of Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Manager and Nuveen Symphony.

Diversification Opportunities for Multi Manager and Nuveen Symphony

0.6

Correlation Coefficient

Multi Manager  Nuveen Symphony

Poor diversification

The 3 months correlation between Multi and Nuveen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Multi Manager Growth Strategie and Nuveen Symphony Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Floating and Multi Manager 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 Multi Manager Growth Strategies are associated (or correlated) with Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Floating has no effect on the direction of Multi Manager i.e., Multi Manager and Nuveen Symphony go up and down completely randomly.

Pair Corralation between Multi Manager and Nuveen Symphony

Assuming the 90 days horizon Multi Manager Growth Strategies is expected to under-perform the Nuveen Symphony. In addition to that, Multi Manager is 21.69 times more volatile than Nuveen Symphony Floating. It trades about -0.16 of its total potential returns per unit of risk. Nuveen Symphony Floating is currently generating about -0.24 per unit of volatility. If you would invest  1,826  in Nuveen Symphony Floating on October 13, 2024 and sell it today you would lose (5.00) from holding Nuveen Symphony Floating or give up 0.27% of portfolio value over 90 days.

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

Multi Manager Growth Strategie  vs.  Nuveen Symphony Floating

Multi Manager Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multi Manager Growth Strategies has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Multi Manager is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Symphony Floating

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Symphony Floating are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Nuveen Symphony is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multi Manager and Nuveen Symphony

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

The idea behind Multi Manager Growth Strategies and Nuveen Symphony Floating 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.