Correlation Between Nuveen Floating and Gabelli Global

Can any of the company-specific risk be diversified away by investing in both Nuveen Floating and Gabelli 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 Nuveen Floating and Gabelli Global 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 Gabelli Global Small, you can compare the effects of market volatilities on Nuveen Floating and Gabelli 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 Nuveen Floating with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Gabelli Global.

Diversification Opportunities for Nuveen Floating and Gabelli Global

0.0

Correlation Coefficient

Nuveen Floating  Gabelli Global

Pay attention - limited upside

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

Pair Corralation between Nuveen Floating and Gabelli Global

If you would invest  1,164  in Gabelli Global Small on December 27, 2024 and sell it today you would earn a total of  61.00  from holding Gabelli Global Small or generate 5.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nuveen Floating Rate  vs.  Gabelli Global Small

Nuveen Floating Rate

Risk-Adjusted Performance

Very Weak

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

Gabelli Global Small

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Global Small are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Gabelli Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen Floating and Gabelli Global

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

The idea behind Nuveen Floating Rate and Gabelli Global Small 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.