Correlation Between Nuveen Amt and India Closed

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

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

Diversification Opportunities for Nuveen Amt and India Closed

0.69

Correlation Coefficient

Nuveen Amt  India Closed

Poor diversification

The 3 months correlation between Nuveen and India is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and India Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Closed and Nuveen Amt 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 Amt Free Municipal are associated (or correlated) with India Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Closed has no effect on the direction of Nuveen Amt i.e., Nuveen Amt and India Closed go up and down completely randomly.

Pair Corralation between Nuveen Amt and India Closed

Considering the 90-day investment horizon Nuveen Amt is expected to generate 2.71 times less return on investment than India Closed. But when comparing it to its historical volatility, Nuveen Amt Free Municipal is 1.66 times less risky than India Closed. It trades about 0.03 of its potential returns per unit of risk. India Closed is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,254  in India Closed on September 28, 2024 and sell it today you would earn a total of  346.00  from holding India Closed or generate 27.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Nuveen Amt Free Municipal  vs.  India Closed

Nuveen Amt Free

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Amt Free Municipal has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Nuveen Amt is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

India Closed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days India Closed has generated negative risk-adjusted returns adding no value to fund investors. In spite of unfluctuating performance in the last few months, the Fund's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the fund investors.

Pair Trading with Nuveen Amt and India Closed

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

The idea behind Nuveen Amt Free Municipal and India Closed 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.