Correlation Between Calvert Short and Nuveen Preferred

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

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

Diversification Opportunities for Calvert Short and Nuveen Preferred

0.84

Correlation Coefficient

Calvert Short  Nuveen Preferred

Very poor diversification

The 3 months correlation between Calvert and Nuveen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Short Duration and Nuveen Preferred Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred Income and Calvert Short 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 Calvert Short Duration are associated (or correlated) with Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred Income has no effect on the direction of Calvert Short i.e., Calvert Short and Nuveen Preferred go up and down completely randomly.

Pair Corralation between Calvert Short and Nuveen Preferred

Assuming the 90 days horizon Calvert Short is expected to generate 4.37 times less return on investment than Nuveen Preferred. But when comparing it to its historical volatility, Calvert Short Duration is 3.62 times less risky than Nuveen Preferred. It trades about 0.12 of its potential returns per unit of risk. Nuveen Preferred Income is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  806.00  in Nuveen Preferred Income on August 14, 2025 and sell it today you would earn a total of  11.00  from holding Nuveen Preferred Income or generate 1.36% return on investment over 90 days.

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

Calvert Short Duration  vs.  Nuveen Preferred Income

Calvert Short Duration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Short Duration are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Calvert Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Preferred Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Preferred Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Nuveen Preferred is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Calvert Short and Nuveen Preferred

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

The idea behind Calvert Short Duration and Nuveen Preferred 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..