Correlation Between Eaton Vance and Nuveen Senior
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Senior 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 Senior 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 Nuveen Senior Income, you can compare the effects of market volatilities on Eaton Vance and Nuveen Senior 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 Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Senior.
Diversification Opportunities for Eaton Vance and Nuveen Senior
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Nuveen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income 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 Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Senior go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Senior
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.03 times less return on investment than Nuveen Senior. In addition to that, Eaton Vance is 1.51 times more volatile than Nuveen Senior Income. It trades about 0.1 of its total potential returns per unit of risk. Nuveen Senior Income is currently generating about 0.15 per unit of volatility. If you would invest 445.00 in Nuveen Senior Income on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Nuveen Senior Income or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Eaton Vance Tax vs. Nuveen Senior Income
Performance |
| Timeline |
| Eaton Vance Tax |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Nuveen Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Senior
The main advantage of trading using opposite Eaton Vance and Nuveen Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Senior 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 Senior will offset losses from the drop in Nuveen Senior's long position.| Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax |
| Nuveen Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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