Correlation Between Eaton Vance and Nuveen Floating
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Floating 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 Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Nuveen Floating Rate, you can compare the effects of market volatilities on Eaton Vance and Nuveen Floating 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 Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Floating.
Diversification Opportunities for Eaton Vance and Nuveen Floating
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and Nuveen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Nuveen Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Floating Rate 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 Senior are associated (or correlated) with Nuveen Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Floating Rate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Floating go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Floating
Considering the 90-day investment horizon Eaton Vance is expected to generate 2.0 times less return on investment than Nuveen Floating. But when comparing it to its historical volatility, Eaton Vance Senior is 1.26 times less risky than Nuveen Floating. It trades about 0.14 of its potential returns per unit of risk. Nuveen Floating Rate is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 876.00 in Nuveen Floating Rate on August 27, 2024 and sell it today you would earn a total of 23.00 from holding Nuveen Floating Rate or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Nuveen Floating Rate
Performance |
| Timeline |
| Eaton Vance Senior |
| Nuveen Floating Rate |
Eaton Vance and Nuveen Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Floating
The main advantage of trading using opposite Eaton Vance and Nuveen Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Floating 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 Floating will offset losses from the drop in Nuveen Floating's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
| Nuveen Floating vs. Eaton Vance Floating | Nuveen Floating vs. NXG NextGen Infrastructure | Nuveen Floating vs. GAMCO Natural Resources | Nuveen Floating vs. MFS Investment Grade |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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