Correlation Between Nuveen Winslow and American Funds

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

By analyzing existing cross correlation between Nuveen Winslow Large Cap and American Funds The, you can compare the effects of market volatilities on Nuveen Winslow and American Funds 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 Winslow with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Winslow and American Funds.

Diversification Opportunities for Nuveen Winslow and American Funds

0.0

Correlation Coefficient

Nuveen Winslow  American Funds

Pay attention - limited upside

The 3 months correlation between Nuveen and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds and Nuveen Winslow 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 Winslow Large Cap are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and American Funds go up and down completely randomly.

Pair Corralation between Nuveen Winslow and American Funds

If you would invest  7,535  in American Funds The on September 14, 2024 and sell it today you would earn a total of  920.00  from holding American Funds The or generate 12.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nuveen Winslow Large Cap  vs.  American Funds The

Nuveen Winslow Large

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Nuveen Winslow Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Nuveen Winslow is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

American Funds

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds The are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Funds may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Nuveen Winslow and American Funds

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

The idea behind Nuveen Winslow Large Cap and American Funds The 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 Stocks Directory module to find actively traded stocks across global markets.