Correlation Between Nuveen Floating and GAMCO Natural

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

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

Diversification Opportunities for Nuveen Floating and GAMCO Natural

-0.24

Correlation Coefficient

Nuveen Floating  GAMCO Natural

Very good diversification

The 3 months correlation between Nuveen and GAMCO is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Floating Rate and GAMCO Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Natural Resources and Nuveen Floating 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 Floating Rate are associated (or correlated) with GAMCO Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Natural Resources has no effect on the direction of Nuveen Floating i.e., Nuveen Floating and GAMCO Natural go up and down completely randomly.

Pair Corralation between Nuveen Floating and GAMCO Natural

Considering the 90-day investment horizon Nuveen Floating Rate is expected to generate 0.62 times more return on investment than GAMCO Natural. However, Nuveen Floating Rate is 1.6 times less risky than GAMCO Natural. It trades about 0.09 of its potential returns per unit of risk. GAMCO Natural Resources is currently generating about 0.0 per unit of risk. If you would invest  829.00  in Nuveen Floating Rate on September 30, 2024 and sell it today you would earn a total of  63.00  from holding Nuveen Floating Rate or generate 7.6% return on investment over 90 days.

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

Nuveen Floating Rate  vs.  GAMCO Natural Resources

Nuveen Floating Rate

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Floating Rate are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable technical and fundamental indicators, Nuveen Floating is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

GAMCO Natural Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMCO Natural Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Nuveen Floating and GAMCO Natural

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

The idea behind Nuveen Floating Rate and GAMCO Natural Resources 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..