Correlation Between Eic Value and Nuveen Intermediate

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Eic Value and Nuveen Intermediate 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 Eic Value and Nuveen Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Nuveen Intermediate Duration, you can compare the effects of market volatilities on Eic Value and Nuveen Intermediate 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 Eic Value with a short position of Nuveen Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Nuveen Intermediate.

Diversification Opportunities for Eic Value and Nuveen Intermediate

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Eic and Nuveen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Nuveen Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Intermediate and Eic Value 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 Eic Value Fund are associated (or correlated) with Nuveen Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Intermediate has no effect on the direction of Eic Value i.e., Eic Value and Nuveen Intermediate go up and down completely randomly.

Pair Corralation between Eic Value and Nuveen Intermediate

Assuming the 90 days horizon Eic Value Fund is expected to under-perform the Nuveen Intermediate. In addition to that, Eic Value is 5.55 times more volatile than Nuveen Intermediate Duration. It trades about -0.03 of its total potential returns per unit of risk. Nuveen Intermediate Duration is currently generating about -0.01 per unit of volatility. If you would invest  897.00  in Nuveen Intermediate Duration on September 6, 2024 and sell it today you would lose (1.00) from holding Nuveen Intermediate Duration or give up 0.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Eic Value Fund  vs.  Nuveen Intermediate Duration

 Performance 
       Timeline  
Eic Value Fund 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eic Value Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eic Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Nuveen Intermediate 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nuveen Intermediate Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Nuveen Intermediate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eic Value and Nuveen Intermediate Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eic Value and Nuveen Intermediate

The main advantage of trading using opposite Eic Value and Nuveen Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Nuveen Intermediate 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 Intermediate will offset losses from the drop in Nuveen Intermediate's long position.
The idea behind Eic Value Fund and Nuveen Intermediate 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.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Commodity Directory
Find actively traded commodities issued by global exchanges
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios