Correlation Between Nuveen Symphony and American High

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

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

Diversification Opportunities for Nuveen Symphony and American High

0.0

Correlation Coefficient

Nuveen Symphony  American High

Pay attention - limited upside

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

Pair Corralation between Nuveen Symphony and American High

If you would invest  0.00  in American High Income on January 26, 2024 and sell it today you would earn a total of  0.00  from holding American High Income or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Nuveen Symphony Credit  vs.  American High Income

Nuveen Symphony Credit

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Symphony Credit are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. 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.

American High Me

Risk-Adjusted Performance

0 of 100

Modest

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

Pair Trading with Nuveen Symphony and American High

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

The idea behind Nuveen Symphony Credit and American High Income 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.