Correlation Between Eaton Vance and GAMCO Investors
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and GAMCO Investors 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 GAMCO Investors 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 GAMCO Investors, you can compare the effects of market volatilities on Eaton Vance and GAMCO Investors 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 GAMCO Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and GAMCO Investors.
Diversification Opportunities for Eaton Vance and GAMCO Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and GAMCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and GAMCO Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Investors 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 GAMCO Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Investors has no effect on the direction of Eaton Vance i.e., Eaton Vance and GAMCO Investors go up and down completely randomly.
Pair Corralation between Eaton Vance and GAMCO Investors
If you would invest 1,642 in Eaton Vance National on November 2, 2024 and sell it today you would earn a total of 25.50 from holding Eaton Vance National or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Eaton Vance National vs. GAMCO Investors
Performance |
| Timeline |
| Eaton Vance National |
| GAMCO Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and GAMCO Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and GAMCO Investors
The main advantage of trading using opposite Eaton Vance and GAMCO Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, GAMCO Investors 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 GAMCO Investors will offset losses from the drop in GAMCO Investors' 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 |
| GAMCO Investors vs. Gabelli Global Small | GAMCO Investors vs. Gabelli Convertible And | GAMCO Investors vs. MFS Investment Grade | GAMCO Investors vs. Eaton Vance National |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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