Correlation Between Eaton Vance and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Select 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 Nuveen Select 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 Nuveen Select Maturities, you can compare the effects of market volatilities on Eaton Vance and Nuveen Select 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 Nuveen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Select.
Diversification Opportunities for Eaton Vance and Nuveen Select
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Nuveen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Nuveen Select Maturities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Maturities 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 Nuveen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Maturities has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Select go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Select
Considering the 90-day investment horizon Eaton Vance National is expected to generate 1.3 times more return on investment than Nuveen Select. However, Eaton Vance is 1.3 times more volatile than Nuveen Select Maturities. It trades about 0.02 of its potential returns per unit of risk. Nuveen Select Maturities is currently generating about 0.02 per unit of risk. If you would invest 1,634 in Eaton Vance National on August 30, 2024 and sell it today you would earn a total of 95.98 from holding Eaton Vance National or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Nuveen Select Maturities
Performance |
| Timeline |
| Eaton Vance National |
| Nuveen Select Maturities |
Eaton Vance and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Select
The main advantage of trading using opposite Eaton Vance and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Select 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 Nuveen Select will offset losses from the drop in Nuveen Select'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 |
| Nuveen Select vs. Gabelli Global Small | Nuveen Select vs. MFS Investment Grade | Nuveen Select vs. Eaton Vance National | Nuveen Select vs. GAMCO Natural Resources |
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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