Correlation Between Ab Global and Nuveen Symphony

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

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

Diversification Opportunities for Ab Global and Nuveen Symphony

0.95

Correlation Coefficient

Ab Global  Nuveen Symphony

Almost no diversification

The 3 months correlation between CABIX and Nuveen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Risk and Nuveen Symphony Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Floating and Ab 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 Ab Global Risk 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 Floating has no effect on the direction of Ab Global i.e., Ab Global and Nuveen Symphony go up and down completely randomly.

Pair Corralation between Ab Global and Nuveen Symphony

Assuming the 90 days horizon Ab Global Risk is expected to generate 2.76 times more return on investment than Nuveen Symphony. However, Ab Global is 2.76 times more volatile than Nuveen Symphony Floating. It trades about 0.08 of its potential returns per unit of risk. Nuveen Symphony Floating is currently generating about 0.16 per unit of risk. If you would invest  1,464  in Ab Global Risk on May 5, 2025 and sell it today you would earn a total of  152.00  from holding Ab Global Risk or generate 10.38% return on investment over 90 days.

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

Ab Global Risk  vs.  Nuveen Symphony Floating

Ab Global Risk

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Global Risk are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Ab Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Symphony Floating

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Symphony Floating are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Ab Global and Nuveen Symphony

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

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.