Correlation Between Nuveen Amt-free and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt-free and Nuveen Select 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-free and Nuveen Select 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 Nuveen Select Tax Free, you can compare the effects of market volatilities on Nuveen Amt-free and Nuveen Select 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-free with a short position of Nuveen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt-free and Nuveen Select.
Diversification Opportunities for Nuveen Amt-free and Nuveen Select
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Nuveen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and Nuveen Select Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Tax and Nuveen Amt-free 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 Nuveen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Tax has no effect on the direction of Nuveen Amt-free i.e., Nuveen Amt-free and Nuveen Select go up and down completely randomly.
Pair Corralation between Nuveen Amt-free and Nuveen Select
Considering the 90-day investment horizon Nuveen Amt Free Municipal is expected to generate 0.49 times more return on investment than Nuveen Select. However, Nuveen Amt Free Municipal is 2.06 times less risky than Nuveen Select. It trades about 0.34 of its potential returns per unit of risk. Nuveen Select Tax Free is currently generating about -0.05 per unit of risk. If you would invest 1,135 in Nuveen Amt Free Municipal on December 4, 2024 and sell it today you would earn a total of 25.00 from holding Nuveen Amt Free Municipal or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nuveen Amt Free Municipal vs. Nuveen Select Tax Free
Performance |
Timeline |
Nuveen Amt Free |
Nuveen Select Tax |
Nuveen Amt-free and Nuveen Select Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuveen Amt-free and Nuveen Select
The main advantage of trading using opposite Nuveen Amt-free and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt-free position performs unexpectedly, Nuveen Select 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 Select will offset losses from the drop in Nuveen Select's long position.Nuveen Amt-free vs. Nuveen Municipal Credit | Nuveen Amt-free vs. Nuveen Amt Free | Nuveen Amt-free vs. Nuveen Municipal Value | Nuveen Amt-free vs. Nuveen Municipal High |
Nuveen Select vs. Nuveen Dividend Advantage | Nuveen Select vs. Nuveen Amt Free Municipal | Nuveen Select vs. Nuveen Municipal Credit | Nuveen Select vs. Nuveen Amt Free |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |