Correlation Between Nuveen California and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Nuveen California and Nebraska Municipal 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 California and Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen California Municipal and Nebraska Municipal Fund, you can compare the effects of market volatilities on Nuveen California and Nebraska Municipal 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 California with a short position of Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen California and Nebraska Municipal.
Diversification Opportunities for Nuveen California and Nebraska Municipal
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Nebraska is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen California Municipal and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal and Nuveen California 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 California Municipal are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Nuveen California i.e., Nuveen California and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Nuveen California and Nebraska Municipal
If you would invest 951.00 in Nuveen California Municipal on October 24, 2024 and sell it today you would earn a total of 50.00 from holding Nuveen California Municipal or generate 5.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nuveen California Municipal vs. Nebraska Municipal Fund
Performance |
Timeline |
Nuveen California |
Nebraska Municipal |
Nuveen California and Nebraska Municipal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuveen California and Nebraska Municipal
The main advantage of trading using opposite Nuveen California and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen California position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.Nuveen California vs. Saat Defensive Strategy | Nuveen California vs. Realestaterealreturn Strategy Fund | Nuveen California vs. Ultraemerging Markets Profund | Nuveen California vs. Western Assets Emerging |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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