Correlation Between Coinbase Global and Nuveen Symphony

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

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

Diversification Opportunities for Coinbase Global and Nuveen Symphony

0.0
  Correlation Coefficient
Coinbase Global
Nuveen Symphony High

Pay attention - limited upside

The 3 months correlation between Coinbase and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Global Inc and Nuveen Symphony High in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony High and Coinbase Global 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 Coinbase Global 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 High has no effect on the direction of Coinbase Global i.e., Coinbase Global and Nuveen Symphony go up and down completely randomly.

Pair Corralation between Coinbase Global and Nuveen Symphony

If you would invest  23,750  in Coinbase Global on July 25, 2021 and sell it today you would earn a total of  6,334  from holding Coinbase Global or generate 26.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.35%
ValuesDaily Returns

Coinbase Global Inc  vs.  Nuveen Symphony High

 Performance (%) 
      Timeline 
Coinbase Global 
 Coinbase Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Global are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, Coinbase Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Coinbase Price Channel

Nuveen Symphony High 
 Nuveen Performance
0 of 100
Over the last 90 days Nuveen Symphony High 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.

Coinbase Global and Nuveen Symphony Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Coinbase Global and Nuveen Symphony

The main advantage of trading using opposite Coinbase Global and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coinbase Global 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 Coinbase Global and Nuveen Symphony High 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.

Nuveen Symphony High

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Nuveen Symphony as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Nuveen Symphony's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Nuveen Symphony's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Nuveen Symphony High.
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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