Correlation Between Nuveen Minnesota and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Columbia Seligman 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 Nuveen Minnesota and Columbia Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Minnesota Municipal and Columbia Seligman Munications, you can compare the effects of market volatilities on Nuveen Minnesota and Columbia Seligman 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 Nuveen Minnesota with a short position of Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Columbia Seligman.
Diversification Opportunities for Nuveen Minnesota and Columbia Seligman
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Columbia is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Columbia Seligman Munications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman and Nuveen Minnesota 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 Nuveen Minnesota Municipal are associated (or correlated) with Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Columbia Seligman go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Columbia Seligman
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.13 times more return on investment than Columbia Seligman. However, Nuveen Minnesota Municipal is 7.66 times less risky than Columbia Seligman. It trades about -0.03 of its potential returns per unit of risk. Columbia Seligman Munications is currently generating about -0.13 per unit of risk. If you would invest 1,063 in Nuveen Minnesota Municipal on December 29, 2024 and sell it today you would lose (5.00) from holding Nuveen Minnesota Municipal or give up 0.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nuveen Minnesota Municipal vs. Columbia Seligman Munications
Performance |
Timeline |
Nuveen Minnesota Mun |
Columbia Seligman |
Nuveen Minnesota and Columbia Seligman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuveen Minnesota and Columbia Seligman
The main advantage of trading using opposite Nuveen Minnesota and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman's long position.Nuveen Minnesota vs. Tiaa Cref Inflation Linked Bond | Nuveen Minnesota vs. Pimco Inflation Response | Nuveen Minnesota vs. Ab Bond Inflation | Nuveen Minnesota vs. Inflation Linked Fixed Income |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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