Correlation Between Nebraska Municipal and Dana Epiphany

Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Dana Epiphany 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 Nebraska Municipal and Dana Epiphany into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nebraska Municipal Fund and Dana Epiphany Esg, you can compare the effects of market volatilities on Nebraska Municipal and Dana Epiphany 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 Nebraska Municipal with a short position of Dana Epiphany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Dana Epiphany.

Diversification Opportunities for Nebraska Municipal and Dana Epiphany

-0.39

Correlation Coefficient

Nebraska Municipal  Dana Epiphany

Very good diversification

The 3 months correlation between NEBRASKA and Dana is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Dana Epiphany Esg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Epiphany Esg and Nebraska Municipal 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 Nebraska Municipal Fund are associated (or correlated) with Dana Epiphany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Epiphany Esg has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Dana Epiphany go up and down completely randomly.

Pair Corralation between Nebraska Municipal and Dana Epiphany

Assuming the 90 days horizon Nebraska Municipal is expected to generate 1.51 times less return on investment than Dana Epiphany. But when comparing it to its historical volatility, Nebraska Municipal Fund is 2.5 times less risky than Dana Epiphany. It trades about 0.25 of its potential returns per unit of risk. Dana Epiphany Esg is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,550  in Dana Epiphany Esg on August 30, 2024 and sell it today you would earn a total of  50.00  from holding Dana Epiphany Esg or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nebraska Municipal Fund  vs.  Dana Epiphany Esg

Nebraska Municipal

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nebraska Municipal Fund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nebraska Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Dana Epiphany Esg

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Epiphany Esg are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Dana Epiphany may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Nebraska Municipal and Dana Epiphany

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

The idea behind Nebraska Municipal Fund and Dana Epiphany Esg 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.