Correlation Between Eaton Vance and Nuveen Amt-free
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Amt-free 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 Amt-free 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 Amt Free Municipal, you can compare the effects of market volatilities on Eaton Vance and Nuveen Amt-free 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 Amt-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Amt-free.
Diversification Opportunities for Eaton Vance and Nuveen Amt-free
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eaton and Nuveen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Nuveen Amt Free Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Amt Free 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 Amt-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Amt Free has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Amt-free go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Amt-free
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.17 times less return on investment than Nuveen Amt-free. In addition to that, Eaton Vance is 1.72 times more volatile than Nuveen Amt Free Municipal. It trades about 0.09 of its total potential returns per unit of risk. Nuveen Amt Free Municipal is currently generating about 0.18 per unit of volatility. If you would invest 1,062 in Nuveen Amt Free Municipal on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Nuveen Amt Free Municipal or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Nuveen Amt Free Municipal
Performance |
| Timeline |
| Eaton Vance Tax |
| Nuveen Amt Free |
Eaton Vance and Nuveen Amt-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Amt-free
The main advantage of trading using opposite Eaton Vance and Nuveen Amt-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Amt-free 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 Amt-free will offset losses from the drop in Nuveen Amt-free's long position.| Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Blackrock Muniholdings Closed | Eaton Vance vs. DTF Tax Free | Eaton Vance vs. Eaton Vance Floating |
| Nuveen Amt-free vs. MFS Investment Grade | Nuveen Amt-free vs. Eaton Vance Municipal | Nuveen Amt-free vs. DTF Tax Free | Nuveen Amt-free vs. Aquagold International |
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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