Correlation Between Siit Dynamic and Nuveen Large

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

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

Diversification Opportunities for Siit Dynamic and Nuveen Large

0.85

Correlation Coefficient

Siit Dynamic  Nuveen Large

Very poor diversification

The 3 months correlation between Siit and Nuveen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Siit Dynamic Asset and Nuveen Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Large Cap and Siit Dynamic 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 Siit Dynamic Asset are associated (or correlated) with Nuveen Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Large Cap has no effect on the direction of Siit Dynamic i.e., Siit Dynamic and Nuveen Large go up and down completely randomly.

Pair Corralation between Siit Dynamic and Nuveen Large

Assuming the 90 days horizon Siit Dynamic is expected to generate 3.41 times less return on investment than Nuveen Large. In addition to that, Siit Dynamic is 1.51 times more volatile than Nuveen Large Cap. It trades about 0.01 of its total potential returns per unit of risk. Nuveen Large Cap is currently generating about 0.07 per unit of volatility. If you would invest  2,939  in Nuveen Large Cap on October 10, 2024 and sell it today you would earn a total of  1,117  from holding Nuveen Large Cap or generate 38.01% return on investment over 90 days.

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

Siit Dynamic Asset  vs.  Nuveen Large Cap

Siit Dynamic Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siit Dynamic Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Nuveen Large Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Siit Dynamic and Nuveen Large

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

The idea behind Siit Dynamic Asset and Nuveen Large Cap 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.