Correlation Between Eaton Vance and Nuveen SP
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Eaton Vance and Nuveen SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen SP.
Diversification Opportunities for Eaton Vance and Nuveen SP
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Nuveen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Nuveen SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen SP 500 has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen SP go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen SP
Considering the 90-day investment horizon Eaton Vance is expected to generate 2.18 times less return on investment than Nuveen SP. In addition to that, Eaton Vance is 1.11 times more volatile than Nuveen SP 500. It trades about 0.19 of its total potential returns per unit of risk. Nuveen SP 500 is currently generating about 0.45 per unit of volatility. If you would invest 1,666 in Nuveen SP 500 on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Nuveen SP 500 or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Nuveen SP 500
Performance |
| Timeline |
| Eaton Vance Tax |
| Nuveen SP 500 |
Eaton Vance and Nuveen SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen SP
The main advantage of trading using opposite Eaton Vance and Nuveen SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen SP 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 SP will offset losses from the drop in Nuveen SP'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 SP vs. Nuveen SP 500 | Nuveen SP vs. Voya Global Equity | Nuveen SP vs. Nuveen NASDAQ 100 | Nuveen SP vs. Nuveen Real Asset |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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