Nuveen Credit Strategies Fund Volatility
| JQC Fund | USD 5.30 0.04 0.75% |
Nuveen Credit Strategies has Sharpe Ratio of -0.15, which conveys that the entity had a -0.15 % return per unit of risk over the last 3 months. Nuveen Credit exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Nuveen Credit's Mean Deviation of 0.5089, standard deviation of 0.6371, and Risk Adjusted Performance of (0.14) to check out the risk estimate we provide. Key indicators related to Nuveen Credit's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Nuveen Credit Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Nuveen daily returns, and it is calculated using variance and standard deviation. We also use Nuveen's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nuveen Credit volatility.
Nuveen |
Downward market volatility can be a perfect environment for investors who play the long game with Nuveen Credit. They may decide to buy additional shares of Nuveen Credit at lower prices to lower the average cost per share, thereby improving their portfolio's performance when markets normalize.
Moving together with Nuveen Fund
Moving against Nuveen Fund
| 0.72 | SGDLX | Sprott Gold Equity | PairCorr |
| 0.71 | EBSIX | Campbell Systematic Macro | PairCorr |
| 0.7 | ARBOX | Absolute Convertible | PairCorr |
| 0.65 | DLDFX | Destinations Low Duration | PairCorr |
| 0.63 | HTD | John Hancock Tax | PairCorr |
| 0.63 | DBIWX | Dws Global Macro | PairCorr |
| 0.63 | UTF | Cohen And Steers | PairCorr |
| 0.6 | KF | Korea Closed | PairCorr |
| 0.6 | GIOIX | Guggenheim Macro Opp | PairCorr |
Nuveen Credit Market Sensitivity And Downside Risk
Nuveen Credit's beta coefficient measures the volatility of Nuveen fund compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Nuveen fund's returns against your selected market. In other words, Nuveen Credit's beta of 0.14 provides an investor with an approximation of how much risk Nuveen Credit fund can potentially add to one of your existing portfolios. Nuveen Credit Strategies exhibits very low volatility with skewness of -0.42 and kurtosis of 0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nuveen Credit's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nuveen Credit's fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Nuveen Credit Strategies Demand TrendCheck current 90 days Nuveen Credit correlation with market (Dow Jones Industrial)Nuveen Beta |
Nuveen standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.61 |
It is essential to understand the difference between upside risk (as represented by Nuveen Credit's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Nuveen Credit's daily returns or price. Since the actual investment returns on holding a position in nuveen fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Nuveen Credit.
Nuveen Credit Strategies Fund Volatility Analysis
Volatility refers to the frequency at which Nuveen Credit fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Nuveen Credit's price changes. Investors will then calculate the volatility of Nuveen Credit's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Nuveen Credit's volatility:
Historical Volatility
This type of fund volatility measures Nuveen Credit's fluctuations based on previous trends. It's commonly used to predict Nuveen Credit's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Nuveen Credit's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Nuveen Credit's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Nuveen Credit Strategies Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Nuveen Credit Projected Return Density Against Market
Considering the 90-day investment horizon Nuveen Credit has a beta of 0.1413 . This indicates as returns on the market go up, Nuveen Credit average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Nuveen Credit Strategies will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Nuveen Credit or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Nuveen Credit's price will be affected by overall fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Nuveen fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Nuveen Credit Strategies has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Nuveen Credit Price Volatility?
Several factors can influence a fund's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Nuveen Credit Fund Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Nuveen Credit is -672.15. The daily returns are distributed with a variance of 0.38 and standard deviation of 0.61. The mean deviation of Nuveen Credit Strategies is currently at 0.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | -0.1 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 0.61 | |
Ir | Information ratio | -0.06 |
Nuveen Credit Fund Return Volatility
Nuveen Credit historical daily return volatility represents how much of Nuveen Credit fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.6136% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Nuveen Credit Volatility
Volatility is a rate at which the price of Nuveen Credit or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Nuveen Credit may increase or decrease. In other words, similar to Nuveen's beta indicator, it measures the risk of Nuveen Credit and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nuveen Credit fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Nuveen Credit Strategies Income Fund is a closed-ended balanced mutual fund launched by Nuveen Investments, Inc. The fund is managed by Symphony Asset Management, LLC. It invests in the fixed income and public equity markets of the United States. The fund invests in senior secured and second lien loans, preferred securities, convertible securities and related instruments. It seeks to invest in investment grade securities. The fund employs fundamental analysis with a focus on bottom-up stock picking approach based on factors such as interest rate levels, conditions and developing trends in the bond and equity markets, analysis of relative valuations for preferred, convertible and other debt instruments, and other economic and market factors, including the overall outlook for the economy and inflation to create its portfolio. The Fund uses leverage .It benchmarks the performance of its portfolio against Barclays Capital U.S. Aggregate Bond Index. The fund was formerly known as Nuveen Multi-Strategy Income Growth Fund 2. Nuveen Credit Strategies Income Fund was formed on June 25, 2003 and is domiciled in the United States.
Nuveen Credit's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Nuveen Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Nuveen Credit's price varies over time.
3 ways to utilize Nuveen Credit's volatility to invest better
Higher Nuveen Credit's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Nuveen Credit Strategies fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Nuveen Credit Strategies fund volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Nuveen Credit Strategies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Nuveen Credit's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Nuveen Credit's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Nuveen Credit Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.85 and is 1.39 times more volatile than Nuveen Credit Strategies. 5 percent of all equities and portfolios are less risky than Nuveen Credit. You can use Nuveen Credit Strategies to protect your portfolios against small market fluctuations. The fund experiences a moderate downward daily trend and can be a good diversifier. Check odds of Nuveen Credit to be traded at $5.19 in 90 days.Modest diversification
The correlation between Nuveen Credit Strategies and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Credit Strategies and DJI in the same portfolio, assuming nothing else is changed.
Nuveen Credit Additional Risk Indicators
The analysis of Nuveen Credit's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Nuveen Credit's investment and either accepting that risk or mitigating it. Along with some common measures of Nuveen Credit fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.14) | |||
| Market Risk Adjusted Performance | (0.75) | |||
| Mean Deviation | 0.5089 | |||
| Coefficient Of Variation | (658.22) | |||
| Standard Deviation | 0.6371 | |||
| Variance | 0.4059 | |||
| Information Ratio | (0.06) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Nuveen Credit Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Nuveen Credit as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Nuveen Credit's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Nuveen Credit's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Nuveen Credit Strategies.
Other Information on Investing in Nuveen Fund
Nuveen Credit financial ratios help investors to determine whether Nuveen Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Nuveen with respect to the benefits of owning Nuveen Credit security.
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |