Correlation Between Eaton Vance and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Saba Capital 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 Eaton Vance and Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Saba Capital Income, you can compare the effects of market volatilities on Eaton Vance and Saba Capital 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 Eaton Vance with a short position of Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Saba Capital.
Diversification Opportunities for Eaton Vance and Saba Capital
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Saba is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income and Eaton Vance 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 Eaton Vance National are associated (or correlated) with Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Eaton Vance i.e., Eaton Vance and Saba Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Saba Capital
Considering the 90-day investment horizon Eaton Vance is expected to generate 7.45 times less return on investment than Saba Capital. In addition to that, Eaton Vance is 1.12 times more volatile than Saba Capital Income. It trades about 0.01 of its total potential returns per unit of risk. Saba Capital Income is currently generating about 0.07 per unit of volatility. 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 |
Eaton Vance National vs. Saba Capital Income
Performance |
| Timeline |
| Eaton Vance National |
| Saba Capital Income |
Eaton Vance and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Saba Capital
The main advantage of trading using opposite Eaton Vance and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
| Saba Capital vs. Federated Premier Municipal | Saba Capital vs. Blackrock Muniyield | Saba Capital vs. Diamond Hill Investment | Saba Capital vs. NXG NextGen Infrastructure |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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