Correlation Between Nuveen Core and Safeplus International

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

By analyzing existing cross correlation between Nuveen Core Plus and Safeplus International Holdings, you can compare the effects of market volatilities on Nuveen Core and Safeplus International 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 Core with a short position of Safeplus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Core and Safeplus International.

Diversification Opportunities for Nuveen Core and Safeplus International

0.1

Correlation Coefficient

Nuveen Core  Safeplus International

Average diversification

The 3 months correlation between Nuveen and Safeplus is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Core Plus and Safeplus International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safeplus International and Nuveen Core 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 Core Plus are associated (or correlated) with Safeplus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safeplus International has no effect on the direction of Nuveen Core i.e., Nuveen Core and Safeplus International go up and down completely randomly.

Pair Corralation between Nuveen Core and Safeplus International

Given the investment horizon of 90 days Nuveen Core Plus is expected to generate 0.38 times more return on investment than Safeplus International. However, Nuveen Core Plus is 2.66 times less risky than Safeplus International. It trades about 0.0 of its potential returns per unit of risk. Safeplus International Holdings is currently generating about -0.05 per unit of risk. If you would invest  1,133  in Nuveen Core Plus on September 12, 2024 and sell it today you would lose (1.58) from holding Nuveen Core Plus or give up 0.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Nuveen Core Plus  vs.  Safeplus International Holding

Nuveen Core Plus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Core Plus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Nuveen Core is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Safeplus International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Safeplus International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Safeplus International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Nuveen Core and Safeplus International

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

The idea behind Nuveen Core Plus and Safeplus International Holdings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.