Correlation Between Nuveen New and Virtus AllianzGI

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

By analyzing existing cross correlation between Nuveen New Jersey and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Nuveen New and Virtus AllianzGI 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 New with a short position of Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen New and Virtus AllianzGI.

Diversification Opportunities for Nuveen New and Virtus AllianzGI

0.25

Correlation Coefficient

Nuveen New  Virtus AllianzGI

Modest diversification

The 3 months correlation between Nuveen and Virtus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con and Nuveen New 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 New Jersey are associated (or correlated) with Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Nuveen New i.e., Nuveen New and Virtus AllianzGI go up and down completely randomly.

Pair Corralation between Nuveen New and Virtus AllianzGI

Considering the 90-day investment horizon Nuveen New Jersey is expected to under-perform the Virtus AllianzGI. In addition to that, Nuveen New is 1.25 times more volatile than Virtus AllianzGI Convertible. It trades about 0.0 of its total potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about 0.22 per unit of volatility. If you would invest  2,065  in Virtus AllianzGI Convertible on December 29, 2024 and sell it today you would earn a total of  130.00  from holding Virtus AllianzGI Convertible or generate 6.3% return on investment over 90 days.

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

Nuveen New Jersey  vs.  Virtus AllianzGI Convertible

Nuveen New Jersey

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen New Jersey has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Nuveen New is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Virtus AllianzGI Con

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus AllianzGI Convertible are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Virtus AllianzGI may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Nuveen New and Virtus AllianzGI

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

The idea behind Nuveen New Jersey and Virtus AllianzGI Convertible 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.