Correlation Between Nuveen Amt and Blackrock Enhanced

Can any of the company-specific risk be diversified away by investing in both Nuveen Amt and Blackrock Enhanced 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 Blackrock Enhanced 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 Blackrock Enhanced Capital, you can compare the effects of market volatilities on Nuveen Amt and Blackrock Enhanced 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 Blackrock Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt and Blackrock Enhanced.

Diversification Opportunities for Nuveen Amt and Blackrock Enhanced

0.14

Correlation Coefficient

Nuveen Amt  Blackrock Enhanced

Average diversification

The 3 months correlation between Nuveen and BlackRock is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and Blackrock Enhanced Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Enhanced 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 Blackrock Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Enhanced has no effect on the direction of Nuveen Amt i.e., Nuveen Amt and Blackrock Enhanced go up and down completely randomly.

Pair Corralation between Nuveen Amt and Blackrock Enhanced

Considering the 90-day investment horizon Nuveen Amt Free Municipal is expected to generate 0.46 times more return on investment than Blackrock Enhanced. However, Nuveen Amt Free Municipal is 2.19 times less risky than Blackrock Enhanced. It trades about 0.17 of its potential returns per unit of risk. Blackrock Enhanced Capital is currently generating about -0.07 per unit of risk. If you would invest  1,320  in Nuveen Amt Free Municipal on December 21, 2024 and sell it today you would earn a total of  55.00  from holding Nuveen Amt Free Municipal or generate 4.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Nuveen Amt Free Municipal  vs.  Blackrock Enhanced Capital

Nuveen Amt Free

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Amt Free Municipal are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable basic indicators, Nuveen Amt is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Blackrock Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Enhanced Capital has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong forward indicators, Blackrock Enhanced 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 Amt and Blackrock Enhanced

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

The idea behind Nuveen Amt Free Municipal and Blackrock Enhanced Capital 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.