Correlation Between Nuveen Ohio and Nuveen Minnesota
Can any of the company-specific risk be diversified away by investing in both Nuveen Ohio and Nuveen Minnesota 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 Ohio and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Ohio Municipal and Nuveen Minnesota Intermediate, you can compare the effects of market volatilities on Nuveen Ohio and Nuveen Minnesota 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 Ohio with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Ohio and Nuveen Minnesota.
Diversification Opportunities for Nuveen Ohio and Nuveen Minnesota
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Nuveen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Ohio Municipal and Nuveen Minnesota Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Int and Nuveen Ohio 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 Ohio Municipal are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Int has no effect on the direction of Nuveen Ohio i.e., Nuveen Ohio and Nuveen Minnesota go up and down completely randomly.
Pair Corralation between Nuveen Ohio and Nuveen Minnesota
Assuming the 90 days horizon Nuveen Ohio is expected to generate 1.28 times less return on investment than Nuveen Minnesota. In addition to that, Nuveen Ohio is 1.43 times more volatile than Nuveen Minnesota Intermediate. It trades about 0.13 of its total potential returns per unit of risk. Nuveen Minnesota Intermediate is currently generating about 0.24 per unit of volatility. If you would invest 944.00 in Nuveen Minnesota Intermediate on June 10, 2025 and sell it today you would earn a total of 19.00 from holding Nuveen Minnesota Intermediate or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Ohio Municipal vs. Nuveen Minnesota Intermediate
Performance |
| Timeline |
| Nuveen Ohio Municipal |
| Nuveen Minnesota Int |
Nuveen Ohio and Nuveen Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Ohio and Nuveen Minnesota
The main advantage of trading using opposite Nuveen Ohio and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Ohio position performs unexpectedly, Nuveen Minnesota 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 Minnesota will offset losses from the drop in Nuveen Minnesota's long position.| Nuveen Ohio vs. Franklin Ohio Tax Free | Nuveen Ohio vs. Fidelity Ohio Municipal | Nuveen Ohio vs. Vanguard Ohio Long Term | Nuveen Ohio vs. Eaton Vance Ohio |
| Nuveen Minnesota vs. Fidelity Advisor Health | Nuveen Minnesota vs. Invesco Global Health | Nuveen Minnesota vs. Delaware Healthcare Fund | Nuveen Minnesota vs. Schwab Health Care |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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