Correlation Between American Mutual and Nuveen Large

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

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

Diversification Opportunities for American Mutual and Nuveen Large

0.99

Correlation Coefficient

American Mutual  Nuveen Large

No risk reduction

The 3 months correlation between American and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Nuveen Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Large Cap and American Mutual 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 American Mutual Fund are associated (or correlated) with Nuveen Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Large Cap has no effect on the direction of American Mutual i.e., American Mutual and Nuveen Large go up and down completely randomly.

Pair Corralation between American Mutual and Nuveen Large

Assuming the 90 days horizon American Mutual is expected to generate 1.5 times less return on investment than Nuveen Large. But when comparing it to its historical volatility, American Mutual Fund is 1.31 times less risky than Nuveen Large. It trades about 0.21 of its potential returns per unit of risk. Nuveen Large Cap is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,779  in Nuveen Large Cap on May 7, 2025 and sell it today you would earn a total of  438.00  from holding Nuveen Large Cap or generate 11.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

American Mutual Fund  vs.  Nuveen Large Cap

American Mutual

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Mutual Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Mutual may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Nuveen Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Large Cap are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Nuveen Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with American Mutual and Nuveen Large

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

The idea behind American Mutual Fund and Nuveen Large Cap 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.