Correlation Between Us Global and Nuveen Core

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

By analyzing existing cross correlation between Us Global Nanospace and Nuveen Core Plus, you can compare the effects of market volatilities on Us Global and Nuveen Core 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 Us Global with a short position of Nuveen Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Global and Nuveen Core.

Diversification Opportunities for Us Global and Nuveen Core

0.37

Correlation Coefficient

Us Global  Nuveen Core

Weak diversification

The 3 months correlation between USGA and Nuveen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Nanospace and Nuveen Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Core Plus and Us Global 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 Us Global Nanospace are associated (or correlated) with Nuveen Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Core Plus has no effect on the direction of Us Global i.e., Us Global and Nuveen Core go up and down completely randomly.

Pair Corralation between Us Global and Nuveen Core

If you would invest  834.00  in Nuveen Core Plus on December 1, 2024 and sell it today you would earn a total of  274.00  from holding Nuveen Core Plus or generate 32.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Us Global Nanospace  vs.  Nuveen Core Plus

Us Global Nanospace

Risk-Adjusted Performance

OK

Over the last 90 days Us Global Nanospace has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Us Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Core Plus

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Core Plus are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Nuveen Core is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Us Global and Nuveen Core

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

The idea behind Us Global Nanospace and Nuveen Core Plus 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.