Correlation Between Nuveen Growth and Unified Series

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

By analyzing existing cross correlation between Nuveen Growth Opportunities and Unified Series Trust, you can compare the effects of market volatilities on Nuveen Growth and Unified Series 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 Growth with a short position of Unified Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Growth and Unified Series.

Diversification Opportunities for Nuveen Growth and Unified Series

0.88

Correlation Coefficient

Nuveen Growth  Unified Series

Very poor diversification

The 3 months correlation between Nuveen and Unified is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Growth Opportunities and Unified Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unified Series Trust and Nuveen Growth 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 Growth Opportunities are associated (or correlated) with Unified Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unified Series Trust has no effect on the direction of Nuveen Growth i.e., Nuveen Growth and Unified Series go up and down completely randomly.

Pair Corralation between Nuveen Growth and Unified Series

Given the investment horizon of 90 days Nuveen Growth Opportunities is expected to under-perform the Unified Series. In addition to that, Nuveen Growth is 1.52 times more volatile than Unified Series Trust. It trades about -0.11 of its total potential returns per unit of risk. Unified Series Trust is currently generating about -0.07 per unit of volatility. If you would invest  2,986  in Unified Series Trust on December 29, 2024 and sell it today you would lose (140.00) from holding Unified Series Trust or give up 4.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Nuveen Growth Opportunities  vs.  Unified Series Trust

Nuveen Growth Opport

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Growth Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Etf's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Unified Series Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unified Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Unified Series is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Nuveen Growth and Unified Series

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

The idea behind Nuveen Growth Opportunities and Unified Series Trust 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .