Correlation Between Westcore Small-cap and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Westcore Small-cap and Nuveen Small 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 Westcore Small-cap and Nuveen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westcore Small Cap Growth and Nuveen Small Cap, you can compare the effects of market volatilities on Westcore Small-cap and Nuveen Small 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 Westcore Small-cap with a short position of Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westcore Small-cap and Nuveen Small.
Diversification Opportunities for Westcore Small-cap and Nuveen Small
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Westcore and Nuveen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Westcore Small Cap Growth and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap and Westcore Small-cap 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 Westcore Small Cap Growth are associated (or correlated) with Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Westcore Small-cap i.e., Westcore Small-cap and Nuveen Small go up and down completely randomly.
Pair Corralation between Westcore Small-cap and Nuveen Small
Assuming the 90 days horizon Westcore Small Cap Growth is expected to under-perform the Nuveen Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Westcore Small Cap Growth is 1.04 times less risky than Nuveen Small. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Nuveen Small Cap is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,841 in Nuveen Small Cap on August 22, 2025 and sell it today you would lose (24.00) from holding Nuveen Small Cap or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westcore Small Cap Growth vs. Nuveen Small Cap
Performance |
| Timeline |
| Westcore Small Cap |
| Nuveen Small Cap |
Westcore Small-cap and Nuveen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westcore Small-cap and Nuveen Small
The main advantage of trading using opposite Westcore Small-cap and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westcore Small-cap position performs unexpectedly, Nuveen Small 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 Small will offset losses from the drop in Nuveen Small's long position.| Westcore Small-cap vs. Nuveen Small Cap | Westcore Small-cap vs. Royce Smaller Companies Growth | Westcore Small-cap vs. First American Investment | Westcore Small-cap vs. Small Cap Growth |
| Nuveen Small vs. First American Investment | Nuveen Small vs. Boston Trust Equity | Nuveen Small vs. Westcore Small Cap Growth | Nuveen Small vs. Nuveen Nwq Small Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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