Correlation Between Nuveen All-american and The Arbitrage
Can any of the company-specific risk be diversified away by investing in both Nuveen All-american and The Arbitrage 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 All-american and The Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen All American Municipal and The Arbitrage Credit, you can compare the effects of market volatilities on Nuveen All-american and The Arbitrage 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 All-american with a short position of The Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen All-american and The Arbitrage.
Diversification Opportunities for Nuveen All-american and The Arbitrage
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NUVEEN and The is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen All American Municipal and The Arbitrage Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Credit and Nuveen All-american 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 All American Municipal are associated (or correlated) with The Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Credit has no effect on the direction of Nuveen All-american i.e., Nuveen All-american and The Arbitrage go up and down completely randomly.
Pair Corralation between Nuveen All-american and The Arbitrage
Assuming the 90 days horizon Nuveen All-american is expected to generate 1.01 times less return on investment than The Arbitrage. But when comparing it to its historical volatility, Nuveen All American Municipal is 1.02 times less risky than The Arbitrage. It trades about 0.17 of its potential returns per unit of risk. The Arbitrage Credit is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 980.00 in The Arbitrage Credit on August 19, 2025 and sell it today you would earn a total of 3.00 from holding The Arbitrage Credit or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen All American Municipal vs. The Arbitrage Credit
Performance |
| Timeline |
| Nuveen All American |
| Arbitrage Credit |
Nuveen All-american and The Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen All-american and The Arbitrage
The main advantage of trading using opposite Nuveen All-american and The Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen All-american position performs unexpectedly, The Arbitrage 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 The Arbitrage will offset losses from the drop in The Arbitrage's long position.| Nuveen All-american vs. Nuveen Small Cap | Nuveen All-american vs. Nuveen Real Estate | Nuveen All-american vs. Nuveen Real Estate | Nuveen All-american vs. Nuveen Preferred Securities |
| The Arbitrage vs. Nationwide Government Bond | The Arbitrage vs. Us Government Securities | The Arbitrage vs. Virtus Seix Government | The Arbitrage vs. Davis Government Bond |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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