Correlation Between Nuveen Minnesota and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Minnesota and Eaton Vance 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 Nuveen Minnesota and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Minnesota Municipal and Eaton Vance Global, you can compare the effects of market volatilities on Nuveen Minnesota and Eaton Vance 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 Nuveen Minnesota with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Minnesota and Eaton Vance.
Diversification Opportunities for Nuveen Minnesota and Eaton Vance
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nuveen and Eaton is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Minnesota Municipal and Eaton Vance Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Global and Nuveen Minnesota 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 Nuveen Minnesota Municipal are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Global has no effect on the direction of Nuveen Minnesota i.e., Nuveen Minnesota and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Minnesota and Eaton Vance
Assuming the 90 days horizon Nuveen Minnesota Municipal is expected to generate 0.54 times more return on investment than Eaton Vance. However, Nuveen Minnesota Municipal is 1.85 times less risky than Eaton Vance. It trades about 0.22 of its potential returns per unit of risk. Eaton Vance Global is currently generating about 0.03 per unit of risk. If you would invest 1,074 in Nuveen Minnesota Municipal on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Nuveen Minnesota Municipal or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Minnesota Municipal vs. Eaton Vance Global
Performance |
| Timeline |
| Nuveen Minnesota Mun |
| Eaton Vance Global |
Nuveen Minnesota and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Minnesota and Eaton Vance
The main advantage of trading using opposite Nuveen Minnesota and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Minnesota position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Nuveen Minnesota vs. Nuveen Small Cap | Nuveen Minnesota vs. Nuveen Real Estate | Nuveen Minnesota vs. Nuveen Real Estate | Nuveen Minnesota vs. Nuveen Preferred Securities |
| Eaton Vance vs. Transamerica Funds | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Nuveen Minnesota Municipal | Eaton Vance vs. Morningstar Municipal Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
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