Correlation Between Nuveen Strategic and Prudential California
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Prudential California 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 Strategic and Prudential California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Strategic Municipal and Prudential California Muni, you can compare the effects of market volatilities on Nuveen Strategic and Prudential California 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 Strategic with a short position of Prudential California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Prudential California.
Diversification Opportunities for Nuveen Strategic and Prudential California
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nuveen and Prudential is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Prudential California Muni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential California and Nuveen Strategic 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 Strategic Municipal are associated (or correlated) with Prudential California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential California has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Prudential California go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Prudential California
Assuming the 90 days horizon Nuveen Strategic Municipal is expected to generate 1.71 times more return on investment than Prudential California. However, Nuveen Strategic is 1.71 times more volatile than Prudential California Muni. It trades about 0.35 of its potential returns per unit of risk. Prudential California Muni is currently generating about 0.43 per unit of risk. If you would invest 950.00 in Nuveen Strategic Municipal on August 28, 2025 and sell it today you would earn a total of 39.00 from holding Nuveen Strategic Municipal or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Prudential California Muni
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Prudential California |
Nuveen Strategic and Prudential California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Prudential California
The main advantage of trading using opposite Nuveen Strategic and Prudential California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Prudential California 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 Prudential California will offset losses from the drop in Prudential California's long position.| Nuveen Strategic vs. Invesco Real Estate | Nuveen Strategic vs. Pender Real Estate | Nuveen Strategic vs. Franklin Real Estate | Nuveen Strategic vs. Columbia Real Estate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |