Correlation Between Dws Strategic and Nuveen New

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

By analyzing existing cross correlation between Dws Strategic Municipal and Nuveen New York, you can compare the effects of market volatilities on Dws Strategic and Nuveen New 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 Dws Strategic with a short position of Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Strategic and Nuveen New.

Diversification Opportunities for Dws Strategic and Nuveen New

-0.13

Correlation Coefficient

Dws Strategic  Nuveen New

Good diversification

The 3 months correlation between Dws and Nuveen is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dws Strategic Municipal and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York and Dws Strategic 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 Dws Strategic Municipal are associated (or correlated) with Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of Dws Strategic i.e., Dws Strategic and Nuveen New go up and down completely randomly.

Pair Corralation between Dws Strategic and Nuveen New

If you would invest  1,007  in Dws Strategic Municipal on September 24, 2024 and sell it today you would earn a total of  0.00  from holding Dws Strategic Municipal or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Dws Strategic Municipal  vs.  Nuveen New York

Dws Strategic Municipal

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Dws Strategic Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of very inconsistent basic indicators, Dws Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

Nuveen New York

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Dws Strategic and Nuveen New

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

The idea behind Dws Strategic Municipal and Nuveen New York 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.