Correlation Between Saba Capital and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Saba Capital and Eaton Vance 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 Saba Capital and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Capital Income and Eaton Vance National, you can compare the effects of market volatilities on Saba Capital and Eaton Vance 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 Saba Capital with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Capital and Eaton Vance.
Diversification Opportunities for Saba Capital and Eaton Vance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saba and Eaton is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Saba Capital Income and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Saba Capital 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 Saba Capital Income are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance National has no effect on the direction of Saba Capital i.e., Saba Capital and Eaton Vance go up and down completely randomly.
Pair Corralation between Saba Capital and Eaton Vance
Considering the 90-day investment horizon Saba Capital Income is expected to generate 0.89 times more return on investment than Eaton Vance. However, Saba Capital Income is 1.12 times less risky than Eaton Vance. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance National is currently generating about 0.01 per unit of risk. If you would invest 623.00 in Saba Capital Income on November 2, 2024 and sell it today you would earn a total of 163.00 from holding Saba Capital Income or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saba Capital Income vs. Eaton Vance National
Performance |
| Timeline |
| Saba Capital Income |
| Eaton Vance National |
Saba Capital and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Capital and Eaton Vance
The main advantage of trading using opposite Saba Capital and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Capital position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Saba Capital vs. Federated Premier Municipal | Saba Capital vs. Blackrock Muniyield | Saba Capital vs. Diamond Hill Investment | Saba Capital vs. NXG NextGen Infrastructure |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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