Correlation Between Eaton Vance and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Gabelli Utility 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 Gabelli Utility 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 The Gabelli Utility, you can compare the effects of market volatilities on Eaton Vance and Gabelli Utility 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 Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Gabelli Utility.
Diversification Opportunities for Eaton Vance and Gabelli Utility
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eaton and Gabelli is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and The Gabelli Utility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility 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 Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility has no effect on the direction of Eaton Vance i.e., Eaton Vance and Gabelli Utility go up and down completely randomly.
Pair Corralation between Eaton Vance and Gabelli Utility
Considering the 90-day investment horizon Eaton Vance is expected to generate 3.81 times less return on investment than Gabelli Utility. In addition to that, Eaton Vance is 1.02 times more volatile than The Gabelli Utility. It trades about 0.01 of its total potential returns per unit of risk. The Gabelli Utility is currently generating about 0.03 per unit of volatility. If you would invest 2,197 in The Gabelli Utility on November 2, 2024 and sell it today you would earn a total of 253.00 from holding The Gabelli Utility or generate 11.52% 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. The Gabelli Utility
Performance |
| Timeline |
| Eaton Vance National |
| Gabelli Utility |
Eaton Vance and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Gabelli Utility
The main advantage of trading using opposite Eaton Vance and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Gabelli Utility 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 Gabelli Utility will offset losses from the drop in Gabelli Utility'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 |
| Gabelli Utility vs. The Gabelli Equity | Gabelli Utility vs. Virtus AllianzGI Convertible | Gabelli Utility vs. The Gabelli Equity | Gabelli Utility vs. Oxford Lane Capital |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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