Correlation Between Nuveen Winslow and Nuveen Growth

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

Diversification Opportunities for Nuveen Winslow and Nuveen Growth

0.99

Correlation Coefficient

Nuveen Winslow  Nuveen Growth

No risk reduction

The 3 months correlation between Nuveen and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Winslow Large Cap and Nuveen Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Growth Opport 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 Nuveen Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Growth Opport has no effect on the direction of Nuveen Winslow i.e., Nuveen Winslow and Nuveen Growth go up and down completely randomly.

Pair Corralation between Nuveen Winslow and Nuveen Growth

Given the investment horizon of 90 days Nuveen Winslow Large Cap is expected to generate 0.95 times more return on investment than Nuveen Growth. However, Nuveen Winslow Large Cap is 1.05 times less risky than Nuveen Growth. It trades about -0.08 of its potential returns per unit of risk. Nuveen Growth Opportunities is currently generating about -0.11 per unit of risk. If you would invest  3,374  in Nuveen Winslow Large Cap on December 19, 2024 and sell it today you would lose (256.00) from holding Nuveen Winslow Large Cap or give up 7.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Nuveen Winslow Large Cap  vs.  Nuveen Growth Opportunities

Nuveen Winslow Large

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Winslow Large Cap has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Etf's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholders.

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.

Pair Trading with Nuveen Winslow and Nuveen Growth

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

The idea behind Nuveen Winslow Large Cap and Nuveen Growth Opportunities 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.