Correlation Between Nuveen Amt-free and State Street
Can any of the company-specific risk be diversified away by investing in both Nuveen Amt-free and State Street 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 Amt-free and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Amt Free Municipal and State Street Target, you can compare the effects of market volatilities on Nuveen Amt-free and State Street 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 Amt-free with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Amt-free and State Street.
Diversification Opportunities for Nuveen Amt-free and State Street
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and State is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Amt Free Municipal and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target and Nuveen Amt-free 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 Amt Free Municipal are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Nuveen Amt-free i.e., Nuveen Amt-free and State Street go up and down completely randomly.
Pair Corralation between Nuveen Amt-free and State Street
Considering the 90-day investment horizon Nuveen Amt-free is expected to generate 1.98 times less return on investment than State Street. But when comparing it to its historical volatility, Nuveen Amt Free Municipal is 1.29 times less risky than State Street. It trades about 0.13 of its potential returns per unit of risk. State Street Target is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,585 in State Street Target on June 8, 2025 and sell it today you would earn a total of 104.00 from holding State Street Target or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Amt Free Municipal vs. State Street Target
Performance |
| Timeline |
| Nuveen Amt Free |
| State Street Target |
Nuveen Amt-free and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Amt-free and State Street
The main advantage of trading using opposite Nuveen Amt-free and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Amt-free position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Nuveen Amt-free vs. Nuveen Municipalome | Nuveen Amt-free vs. Platinum Asia Investments | Nuveen Amt-free vs. Eaton Vance New | Nuveen Amt-free vs. Nuveen New York |
| State Street vs. Franklin Natural Resources | State Street vs. Calvert Global Energy | State Street vs. Adams Natural Resources | State Street vs. Gamco Natural Resources |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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