Correlation Between California High-yield and Nuveen Strategic
Can any of the company-specific risk be diversified away by investing in both California High-yield and Nuveen Strategic 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 California High-yield and Nuveen Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California High Yield Municipal and Nuveen Strategic Municipal, you can compare the effects of market volatilities on California High-yield and Nuveen Strategic 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 California High-yield with a short position of Nuveen Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High-yield and Nuveen Strategic.
Diversification Opportunities for California High-yield and Nuveen Strategic
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between California and Nuveen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa and Nuveen Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Strategic Mun and California High-yield 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 California High Yield Municipal are associated (or correlated) with Nuveen Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Strategic Mun has no effect on the direction of California High-yield i.e., California High-yield and Nuveen Strategic go up and down completely randomly.
Pair Corralation between California High-yield and Nuveen Strategic
Assuming the 90 days horizon California High Yield Municipal is expected to generate 1.13 times more return on investment than Nuveen Strategic. However, California High-yield is 1.13 times more volatile than Nuveen Strategic Municipal. It trades about 0.42 of its potential returns per unit of risk. Nuveen Strategic Municipal is currently generating about 0.34 per unit of risk. If you would invest 921.00 in California High Yield Municipal on August 31, 2025 and sell it today you would earn a total of 48.00 from holding California High Yield Municipal or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
California High Yield Municipa vs. Nuveen Strategic Municipal
Performance |
| Timeline |
| California High Yield |
| Nuveen Strategic Mun |
California High-yield and Nuveen Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High-yield and Nuveen Strategic
The main advantage of trading using opposite California High-yield and Nuveen Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High-yield position performs unexpectedly, Nuveen Strategic 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 Strategic will offset losses from the drop in Nuveen Strategic's long position.| California High-yield vs. Alternative Asset Allocation | California High-yield vs. Ab Global Risk | California High-yield vs. Victory Rs Large | California High-yield vs. Gmo Equity Allocation |
| Nuveen Strategic vs. Red Oak Technology | Nuveen Strategic vs. Dreyfus Technology Growth | Nuveen Strategic vs. Blackrock Science Technology | Nuveen Strategic vs. Invesco Technology Fund |
Check out your portfolio center.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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |