Correlation Between Catalyst Insider and Nuveen Nebraska

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

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

Diversification Opportunities for Catalyst Insider and Nuveen Nebraska

0.87

Correlation Coefficient

Catalyst Insider  Nuveen Nebraska

Very poor diversification

The 3 months correlation between Catalyst and NUVEEN is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Insider Income and Nuveen Nebraska Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Nebraska Municipal and Catalyst Insider 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 Catalyst Insider Income are associated (or correlated) with Nuveen Nebraska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Nebraska Municipal has no effect on the direction of Catalyst Insider i.e., Catalyst Insider and Nuveen Nebraska go up and down completely randomly.

Pair Corralation between Catalyst Insider and Nuveen Nebraska

Assuming the 90 days horizon Catalyst Insider is expected to generate 3.8 times less return on investment than Nuveen Nebraska. In addition to that, Catalyst Insider is 1.24 times more volatile than Nuveen Nebraska Municipal. It trades about 0.15 of its total potential returns per unit of risk. Nuveen Nebraska Municipal is currently generating about 0.68 per unit of volatility. If you would invest  965.00  in Nuveen Nebraska Municipal on July 31, 2025 and sell it today you would earn a total of  12.00  from holding Nuveen Nebraska Municipal or generate 1.24% return on investment over 90 days.

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

Catalyst Insider Income  vs.  Nuveen Nebraska Municipal

Catalyst Insider Income

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Insider Income are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalyst Insider is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Nebraska Municipal

Risk-Adjusted Performance

High

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Nebraska Municipal are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nuveen Nebraska is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Catalyst Insider and Nuveen Nebraska

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

The idea behind Catalyst Insider Income and Nuveen Nebraska Municipal 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..