Correlation Between Butterfly Network and Nuveen Symphony

Can any of the company-specific risk be diversified away by investing in both Butterfly Network and Nuveen Symphony 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 Butterfly Network and Nuveen Symphony into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Butterfly Network and Nuveen Symphony Credit, you can compare the effects of market volatilities on Butterfly Network and Nuveen Symphony 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 Butterfly Network with a short position of Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Butterfly Network and Nuveen Symphony.

Diversification Opportunities for Butterfly Network and Nuveen Symphony

0.0

Correlation Coefficient

Butterfly Network  Nuveen Symphony

Pay attention - limited upside

The 3 months correlation between Butterfly and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Butterfly Network and Nuveen Symphony Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Credit and Butterfly Network 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 Butterfly Network are associated (or correlated) with Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Credit has no effect on the direction of Butterfly Network i.e., Butterfly Network and Nuveen Symphony go up and down completely randomly.

Pair Corralation between Butterfly Network and Nuveen Symphony

If you would invest  0.00  in Nuveen Symphony Credit on January 27, 2024 and sell it today you would earn a total of  0.00  from holding Nuveen Symphony Credit or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Butterfly Network  vs.  Nuveen Symphony Credit

Butterfly Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Butterfly Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Nuveen Symphony Credit

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Nuveen Symphony Credit has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen Symphony is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Butterfly Network and Nuveen Symphony

The main advantage of trading using opposite Butterfly Network and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Butterfly Network position performs unexpectedly, Nuveen Symphony 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 Symphony will offset losses from the drop in Nuveen Symphony's long position.

The idea behind Butterfly Network and Nuveen Symphony Credit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.