Correlation Between Nuveen Global and Carbon Streaming

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

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

Diversification Opportunities for Nuveen Global and Carbon Streaming

-0.09

Correlation Coefficient

Nuveen Global  Carbon Streaming

Good diversification

The 3 months correlation between Nuveen and Carbon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Global High and Carbon Streaming Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbon Streaming Corp and Nuveen Global 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 Global High are associated (or correlated) with Carbon Streaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbon Streaming Corp has no effect on the direction of Nuveen Global i.e., Nuveen Global and Carbon Streaming go up and down completely randomly.

Pair Corralation between Nuveen Global and Carbon Streaming

Considering the 90-day investment horizon Nuveen Global High is expected to under-perform the Carbon Streaming. But the etf apears to be less risky and, when comparing its historical volatility, Nuveen Global High is 7.2 times less risky than Carbon Streaming. The etf trades about 0.0 of its potential returns per unit of risk. The Carbon Streaming Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  31.00  in Carbon Streaming Corp on September 21, 2024 and sell it today you would earn a total of  2.00  from holding Carbon Streaming Corp or generate 6.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Nuveen Global High  vs.  Carbon Streaming Corp

Nuveen Global High

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Nuveen Global High has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Carbon Streaming Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carbon Streaming Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Nuveen Global and Carbon Streaming

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

The idea behind Nuveen Global High and Carbon Streaming Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.