Correlation Between Nuveen High and Balanced Strategy
Can any of the company-specific risk be diversified away by investing in both Nuveen High and Balanced Strategy 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 High and Balanced Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen High Yield and Balanced Strategy Fund, you can compare the effects of market volatilities on Nuveen High and Balanced Strategy 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 High with a short position of Balanced Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen High and Balanced Strategy.
Diversification Opportunities for Nuveen High and Balanced Strategy
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Balanced is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen High Yield and Balanced Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Strategy and Nuveen High 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 High Yield are associated (or correlated) with Balanced Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Strategy has no effect on the direction of Nuveen High i.e., Nuveen High and Balanced Strategy go up and down completely randomly.
Pair Corralation between Nuveen High and Balanced Strategy
Assuming the 90 days horizon Nuveen High is expected to generate 1.1 times less return on investment than Balanced Strategy. But when comparing it to its historical volatility, Nuveen High Yield is 1.95 times less risky than Balanced Strategy. It trades about 0.21 of its potential returns per unit of risk. Balanced Strategy Fund is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,188 in Balanced Strategy Fund on September 6, 2025 and sell it today you would earn a total of 37.00 from holding Balanced Strategy Fund or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen High Yield vs. Balanced Strategy Fund
Performance |
| Timeline |
| Nuveen High Yield |
| Balanced Strategy |
Nuveen High and Balanced Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen High and Balanced Strategy
The main advantage of trading using opposite Nuveen High and Balanced Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen High position performs unexpectedly, Balanced Strategy 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 Balanced Strategy will offset losses from the drop in Balanced Strategy's long position.| Nuveen High vs. Nuveen Small Cap | Nuveen High vs. Nuveen Real Estate | Nuveen High vs. Nuveen Real Estate | Nuveen High vs. Nuveen Preferred Securities |
| Balanced Strategy vs. Alpine Ultra Short | Balanced Strategy vs. Blackrock Global Longshort | Balanced Strategy vs. Federated Short Term Income | Balanced Strategy vs. Short Intermediate Bond 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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