Correlation Between Nuveen Municipal and Cornerstone Total
Can any of the company-specific risk be diversified away by investing in both Nuveen Municipal and Cornerstone Total 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 Municipal and Cornerstone Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Municipal Credit and Cornerstone Total Return, you can compare the effects of market volatilities on Nuveen Municipal and Cornerstone Total 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 Municipal with a short position of Cornerstone Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Municipal and Cornerstone Total.
Diversification Opportunities for Nuveen Municipal and Cornerstone Total
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Cornerstone is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Municipal Credit and Cornerstone Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Total Return and Nuveen Municipal 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 Municipal Credit are associated (or correlated) with Cornerstone Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Total Return has no effect on the direction of Nuveen Municipal i.e., Nuveen Municipal and Cornerstone Total go up and down completely randomly.
Pair Corralation between Nuveen Municipal and Cornerstone Total
Considering the 90-day investment horizon Nuveen Municipal is expected to generate 1.28 times less return on investment than Cornerstone Total. But when comparing it to its historical volatility, Nuveen Municipal Credit is 1.19 times less risky than Cornerstone Total. It trades about 0.11 of its potential returns per unit of risk. Cornerstone Total Return is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 762.00 in Cornerstone Total Return on September 11, 2025 and sell it today you would earn a total of 40.00 from holding Cornerstone Total Return or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Municipal Credit vs. Cornerstone Total Return
Performance |
| Timeline |
| Nuveen Municipal Credit |
| Cornerstone Total Return |
Nuveen Municipal and Cornerstone Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Municipal and Cornerstone Total
The main advantage of trading using opposite Nuveen Municipal and Cornerstone Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Municipal position performs unexpectedly, Cornerstone Total 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 Cornerstone Total will offset losses from the drop in Cornerstone Total's long position.| Nuveen Municipal vs. Nuveen Amt Free | Nuveen Municipal vs. Nuveen Preferred Income | Nuveen Municipal vs. Nuveen Dividend Advantage | Nuveen Municipal vs. Eaton Vance Tax |
| Cornerstone Total vs. Eaton Vance Tax | Cornerstone Total vs. Blackrock Enhanced Capital | Cornerstone Total vs. Aberdeen Total Dynamic | Cornerstone Total vs. Pimco Energy Tactical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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