Correlation Between Nuveen Large and Deutsche Science

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

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

Diversification Opportunities for Nuveen Large and Deutsche Science

0.99

Correlation Coefficient

Nuveen Large  Deutsche Science

No risk reduction

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

Pair Corralation between Nuveen Large and Deutsche Science

Assuming the 90 days horizon Nuveen Large is expected to generate 1.42 times less return on investment than Deutsche Science. But when comparing it to its historical volatility, Nuveen Large Cap is 1.26 times less risky than Deutsche Science. It trades about 0.25 of its potential returns per unit of risk. Deutsche Science And is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  3,608  in Deutsche Science And on May 6, 2025 and sell it today you would earn a total of  663.00  from holding Deutsche Science And or generate 18.38% return on investment over 90 days.

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

Nuveen Large Cap  vs.  Deutsche Science And

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 19 (%) 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.

Deutsche Science And

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Science And are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Deutsche Science showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nuveen Large and Deutsche Science

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

The idea behind Nuveen Large Cap and Deutsche Science And 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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.