Correlation Between Nuveen Short-duration and Aig Government
Can any of the company-specific risk be diversified away by investing in both Nuveen Short-duration and Aig Government 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 Short-duration and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Short Duration High and Aig Government Money, you can compare the effects of market volatilities on Nuveen Short-duration and Aig Government 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 Short-duration with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Short-duration and Aig Government.
Diversification Opportunities for Nuveen Short-duration and Aig Government
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Aig is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Duration High and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money and Nuveen Short-duration 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 Short Duration High are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Nuveen Short-duration i.e., Nuveen Short-duration and Aig Government go up and down completely randomly.
Pair Corralation between Nuveen Short-duration and Aig Government
Assuming the 90 days horizon Nuveen Short Duration High is expected to generate 0.88 times more return on investment than Aig Government. However, Nuveen Short Duration High is 1.13 times less risky than Aig Government. It trades about 0.04 of its potential returns per unit of risk. Aig Government Money is currently generating about -0.01 per unit of risk. If you would invest 953.00 in Nuveen Short Duration High on December 27, 2024 and sell it today you would earn a total of 4.00 from holding Nuveen Short Duration High or generate 0.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nuveen Short Duration High vs. Aig Government Money
Performance |
Timeline |
Nuveen Short Duration |
Aig Government Money |
Nuveen Short-duration and Aig Government Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuveen Short-duration and Aig Government
The main advantage of trading using opposite Nuveen Short-duration and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short-duration position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.Nuveen Short-duration vs. Goldman Sachs Small | Nuveen Short-duration vs. Nt International Small Mid | Nuveen Short-duration vs. Hunter Small Cap | Nuveen Short-duration vs. Ashmore Emerging Markets |
Aig Government vs. Blackrock Health Sciences | Aig Government vs. Alphacentric Lifesci Healthcare | Aig Government vs. Baillie Gifford Health | Aig Government vs. Schwab Health Care |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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