Correlation Between Eaton Vance and Nuveen Short
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Eaton Vance and Nuveen Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Short.
Diversification Opportunities for Eaton Vance and Nuveen Short
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Nuveen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Nuveen Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Short Duration has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Short go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Short
If you would invest 609.00 in Eaton Vance Senior on November 1, 2024 and sell it today you would earn a total of 16.50 from holding Eaton Vance Senior or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Nuveen Short Duration
Performance |
| Timeline |
| Eaton Vance Senior |
| Nuveen Short Duration |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Nuveen Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Nuveen Short
The main advantage of trading using opposite Eaton Vance and Nuveen Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Short 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 Short will offset losses from the drop in Nuveen Short's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. Federated Premier Municipal |
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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 Correlations module to find global opportunities by holding instruments from different markets.
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