Correlation Between Eaton Vance and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Guggenheim Strategic 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 Guggenheim Strategic 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 Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Eaton Vance and Guggenheim Strategic 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 Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Guggenheim Strategic.
Diversification Opportunities for Eaton Vance and Guggenheim Strategic
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Guggenheim is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic 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 Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Eaton Vance i.e., Eaton Vance and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between Eaton Vance and Guggenheim Strategic
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Guggenheim Strategic. In addition to that, Eaton Vance is 1.25 times more volatile than Guggenheim Strategic Opportunities. It trades about -0.17 of its total potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.14 per unit of volatility. If you would invest 1,559 in Guggenheim Strategic Opportunities on August 29, 2024 and sell it today you would earn a total of 21.00 from holding Guggenheim Strategic Opportunities or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Guggenheim Strategic Opportuni
Performance |
| Timeline |
| Eaton Vance National |
| Guggenheim Strategic |
Eaton Vance and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Guggenheim Strategic
The main advantage of trading using opposite Eaton Vance and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Guggenheim Strategic 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 Guggenheim Strategic will offset losses from the drop in Guggenheim Strategic's long position.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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