Correlation Between Nuveen Core and Nuveen Ohio

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

By analyzing existing cross correlation between Nuveen Core Equity and Nuveen Ohio Quality, you can compare the effects of market volatilities on Nuveen Core and Nuveen Ohio 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 Core with a short position of Nuveen Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Core and Nuveen Ohio.

Diversification Opportunities for Nuveen Core and Nuveen Ohio

0.0

Correlation Coefficient

Nuveen Core  Nuveen Ohio

Pay attention - limited upside

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

Pair Corralation between Nuveen Core and Nuveen Ohio

If you would invest  1,575  in Nuveen Core Equity on October 10, 2024 and sell it today you would lose (1.00) from holding Nuveen Core Equity or give up 0.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Nuveen Core Equity  vs.  Nuveen Ohio Quality

Nuveen Core Equity

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Core Equity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound fundamental indicators, Nuveen Core is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Nuveen Ohio Quality

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Ohio Quality has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Nuveen Ohio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Nuveen Core and Nuveen Ohio

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

The idea behind Nuveen Core Equity and Nuveen Ohio Quality 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.