Correlation Between Eaton Vance and Nuveen Arizona
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Arizona 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 Arizona into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Arizona and Nuveen Arizona Municipal, you can compare the effects of market volatilities on Eaton Vance and Nuveen Arizona 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 Arizona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Arizona.
Diversification Opportunities for Eaton Vance and Nuveen Arizona
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Nuveen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Arizona and Nuveen Arizona Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Arizona Municipal 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 Arizona are associated (or correlated) with Nuveen Arizona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Arizona Municipal has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Arizona go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Arizona
Assuming the 90 days horizon Eaton Vance is expected to generate 1.49 times less return on investment than Nuveen Arizona. In addition to that, Eaton Vance is 1.13 times more volatile than Nuveen Arizona Municipal. It trades about 0.15 of its total potential returns per unit of risk. Nuveen Arizona Municipal is currently generating about 0.26 per unit of volatility. If you would invest 1,013 in Nuveen Arizona Municipal on September 4, 2024 and sell it today you would earn a total of 16.00 from holding Nuveen Arizona Municipal or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eaton Vance Arizona vs. Nuveen Arizona Municipal
Performance |
| Timeline |
| Eaton Vance Arizona |
| Nuveen Arizona Municipal |
Eaton Vance and Nuveen Arizona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Arizona
The main advantage of trading using opposite Eaton Vance and Nuveen Arizona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Arizona 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 Arizona will offset losses from the drop in Nuveen Arizona's long position.| Eaton Vance vs. Nuveen Arizona Municipal | Eaton Vance vs. Franklin Arizona Tax Free | Eaton Vance vs. Ab Arizona Portfolio | Eaton Vance vs. Fidelity Arizona Municipal |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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