Correlation Between Nuveen Symphony and Active Portfolios

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

By analyzing existing cross correlation between Nuveen Symphony Credit and Active Portfolios Multi Manager, you can compare the effects of market volatilities on Nuveen Symphony and Active Portfolios 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 Symphony with a short position of Active Portfolios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Symphony and Active Portfolios.

Diversification Opportunities for Nuveen Symphony and Active Portfolios

0.12

Correlation Coefficient

Nuveen Symphony  Active Portfolios

Average diversification

The 3 months correlation between Nuveen and Active is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Symphony Credit and Active Portfolios Multi Manage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Portfolios Multi and Nuveen Symphony 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 Symphony Credit are associated (or correlated) with Active Portfolios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Portfolios Multi has no effect on the direction of Nuveen Symphony i.e., Nuveen Symphony and Active Portfolios go up and down completely randomly.

Pair Corralation between Nuveen Symphony and Active Portfolios

Assuming the 90 days horizon Nuveen Symphony Credit is expected to generate 0.59 times more return on investment than Active Portfolios. However, Nuveen Symphony Credit is 1.7 times less risky than Active Portfolios. It trades about -0.36 of its potential returns per unit of risk. Active Portfolios Multi Manager is currently generating about -0.49 per unit of risk. If you would invest  1,812  in Nuveen Symphony Credit on October 11, 2024 and sell it today you would lose (21.00) from holding Nuveen Symphony Credit or give up 1.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Nuveen Symphony Credit  vs.  Active Portfolios Multi Manage

Nuveen Symphony Credit

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Symphony Credit are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Nuveen Symphony is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Active Portfolios Multi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Active Portfolios Multi Manager has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Active Portfolios is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen Symphony and Active Portfolios

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

The idea behind Nuveen Symphony Credit and Active Portfolios Multi Manager 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.

Check out your portfolio center.

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.