Correlation Between Green Street and Nuveen Global

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

By analyzing existing cross correlation between Green Street Capital and Nuveen Global High, you can compare the effects of market volatilities on Green Street and Nuveen Global 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 Green Street with a short position of Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Street and Nuveen Global.

Diversification Opportunities for Green Street and Nuveen Global

0.0

Correlation Coefficient

Green Street  Nuveen Global

Pay attention - limited upside

The 3 months correlation between Green and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Street Capital and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High and Green Street 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 Green Street Capital are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of Green Street i.e., Green Street and Nuveen Global go up and down completely randomly.

Pair Corralation between Green Street and Nuveen Global

Given the investment horizon of 90 days Green Street Capital is expected to under-perform the Nuveen Global. In addition to that, Green Street is 5.77 times more volatile than Nuveen Global High. It trades about -0.05 of its total potential returns per unit of risk. Nuveen Global High is currently generating about 0.11 per unit of volatility. If you would invest  905.00  in Nuveen Global High on December 4, 2024 and sell it today you would earn a total of  433.00  from holding Nuveen Global High or generate 47.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Green Street Capital  vs.  Nuveen Global High

Green Street Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Street Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Green Street is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Nuveen Global High

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Global High are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Nuveen Global is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Green Street and Nuveen Global

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

The idea behind Green Street Capital and Nuveen Global High 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.