Correlation Between Nuveen Strategic and Simt Large
Can any of the company-specific risk be diversified away by investing in both Nuveen Strategic and Simt Large 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 Simt Large 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 Simt Large Cap, you can compare the effects of market volatilities on Nuveen Strategic and Simt Large 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 Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Strategic and Simt Large.
Diversification Opportunities for Nuveen Strategic and Simt Large
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Simt is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Strategic Municipal and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap 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 Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Nuveen Strategic i.e., Nuveen Strategic and Simt Large go up and down completely randomly.
Pair Corralation between Nuveen Strategic and Simt Large
Assuming the 90 days horizon Nuveen Strategic is expected to generate 49.42 times less return on investment than Simt Large. But when comparing it to its historical volatility, Nuveen Strategic Municipal is 3.58 times less risky than Simt Large. It trades about 0.02 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,463 in Simt Large Cap on April 24, 2025 and sell it today you would earn a total of 282.00 from holding Simt Large Cap or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Strategic Municipal vs. Simt Large Cap
Performance |
| Timeline |
| Nuveen Strategic Mun |
| Simt Large Cap |
Nuveen Strategic and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Strategic and Simt Large
The main advantage of trading using opposite Nuveen Strategic and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Strategic position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Nuveen Strategic vs. Nuveen High Yield | Nuveen Strategic vs. Nuveen High Yield | Nuveen Strategic vs. Nuveen High Yield | Nuveen Strategic vs. Nuveen High Yield |
| Simt Large vs. Alpine Ultra Short | Simt Large vs. Aqr Long Short Equity | Simt Large vs. Cmg Ultra Short | Simt Large vs. Astor Longshort 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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