Correlation Between Nuveen Short and Ameritrans Capital

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

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

Diversification Opportunities for Nuveen Short and Ameritrans Capital

0.0

Correlation Coefficient

Nuveen Short  Ameritrans Capital

Pay attention - limited upside

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

Pair Corralation between Nuveen Short and Ameritrans Capital

If you would invest  1,153  in Nuveen Short Duration on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Nuveen Short Duration or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Nuveen Short Duration  vs.  Ameritrans Capital Corp

Nuveen Short Duration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Short Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Nuveen Short is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ameritrans Capital Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrans Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Nuveen Short and Ameritrans Capital

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

The idea behind Nuveen Short Duration and Ameritrans Capital 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.