Correlation Between Nuveen New and First Trust

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

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

Diversification Opportunities for Nuveen New and First Trust

0.0

Correlation Coefficient

Nuveen New  First Trust

Pay attention - limited upside

The 3 months correlation between Nuveen and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen New Jersey and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short and Nuveen New 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 New Jersey are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Short has no effect on the direction of Nuveen New i.e., Nuveen New and First Trust go up and down completely randomly.

Pair Corralation between Nuveen New and First Trust

If you would invest  1,114  in Nuveen New Jersey on August 26, 2025 and sell it today you would earn a total of  151.00  from holding Nuveen New Jersey or generate 13.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nuveen New Jersey  vs.  First Trust Short

Nuveen New Jersey

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen New Jersey are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively weak basic indicators, Nuveen New revealed solid returns over the last few months and may actually be approaching a breakup point.

First Trust Short

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Short are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, First Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen New and First Trust

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

The idea behind Nuveen New Jersey and First Trust Short 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.