Correlation Between Performance Trust and Nuveen All-american
Can any of the company-specific risk be diversified away by investing in both Performance Trust and Nuveen All-american 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 Performance Trust and Nuveen All-american into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Municipal and Nuveen All American Municipal, you can compare the effects of market volatilities on Performance Trust and Nuveen All-american 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 Performance Trust with a short position of Nuveen All-american. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Nuveen All-american.
Diversification Opportunities for Performance Trust and Nuveen All-american
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Performance and NUVEEN is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Municipal and Nuveen All American Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen All American and Performance Trust 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 Performance Trust Municipal are associated (or correlated) with Nuveen All-american. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen All American has no effect on the direction of Performance Trust i.e., Performance Trust and Nuveen All-american go up and down completely randomly.
Pair Corralation between Performance Trust and Nuveen All-american
Assuming the 90 days horizon Performance Trust Municipal is expected to generate 1.08 times more return on investment than Nuveen All-american. However, Performance Trust is 1.08 times more volatile than Nuveen All American Municipal. It trades about 0.43 of its potential returns per unit of risk. Nuveen All American Municipal is currently generating about 0.35 per unit of risk. If you would invest 2,179 in Performance Trust Municipal on August 5, 2025 and sell it today you would earn a total of 103.00 from holding Performance Trust Municipal or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Municipal vs. Nuveen All American Municipal
Performance |
| Timeline |
| Performance Trust |
| Nuveen All American |
Performance Trust and Nuveen All-american Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Nuveen All-american
The main advantage of trading using opposite Performance Trust and Nuveen All-american positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Nuveen All-american 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 Nuveen All-american will offset losses from the drop in Nuveen All-american's long position.| Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Dreyfus Intermediate Municipal | Performance Trust vs. Core Bond Series | Performance Trust vs. Pioneer Amt Free Municipal |
| Nuveen All-american vs. Financial Industries Fund | Nuveen All-american vs. John Hancock Financial | Nuveen All-american vs. Gabelli Global Financial | Nuveen All-american vs. Blackrock Financial Institutions |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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