Correlation Between Eaton Vance and Gladstone Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Gladstone Capital 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 Gladstone Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Gladstone Capital, you can compare the effects of market volatilities on Eaton Vance and Gladstone Capital 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 Gladstone Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Gladstone Capital.
Diversification Opportunities for Eaton Vance and Gladstone Capital
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eaton and Gladstone is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Gladstone Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Capital 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 Tax are associated (or correlated) with Gladstone Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Capital has no effect on the direction of Eaton Vance i.e., Eaton Vance and Gladstone Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Gladstone Capital
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.49 times more return on investment than Gladstone Capital. However, Eaton Vance Tax is 2.03 times less risky than Gladstone Capital. It trades about -0.09 of its potential returns per unit of risk. Gladstone Capital is currently generating about -0.09 per unit of risk. If you would invest 2,569 in Eaton Vance Tax on December 1, 2024 and sell it today you would lose (28.00) from holding Eaton Vance Tax or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Gladstone Capital
Performance |
| Timeline |
| Eaton Vance Tax |
| Gladstone Capital |
Eaton Vance and Gladstone Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Gladstone Capital
The main advantage of trading using opposite Eaton Vance and Gladstone Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Gladstone Capital 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 Gladstone Capital will offset losses from the drop in Gladstone Capital's long position.| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax |
| Gladstone Capital vs. Main Street Capital | Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Prospect 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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