Correlation Between Gladstone Investment and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Gladstone Investment 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 Gladstone Investment and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gladstone Investment and Eaton Vance Municipal, you can compare the effects of market volatilities on Gladstone Investment 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 Gladstone Investment with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gladstone Investment and Eaton Vance.
Diversification Opportunities for Gladstone Investment and Eaton Vance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gladstone and Eaton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and Gladstone Investment 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 Gladstone Investment 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 Municipal has no effect on the direction of Gladstone Investment i.e., Gladstone Investment and Eaton Vance go up and down completely randomly.
Pair Corralation between Gladstone Investment and Eaton Vance
Given the investment horizon of 90 days Gladstone Investment is expected to generate 3.35 times less return on investment than Eaton Vance. In addition to that, Gladstone Investment is 1.5 times more volatile than Eaton Vance Municipal. It trades about 0.06 of its total potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.29 per unit of volatility. If you would invest 991.00 in Eaton Vance Municipal on October 22, 2024 and sell it today you would earn a total of 33.00 from holding Eaton Vance Municipal or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gladstone Investment vs. Eaton Vance Municipal
Performance |
| Timeline |
| Gladstone Investment |
| Eaton Vance Municipal |
Gladstone Investment and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gladstone Investment and Eaton Vance
The main advantage of trading using opposite Gladstone Investment and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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.| Gladstone Investment vs. PennantPark Floating Rate | Gladstone Investment vs. Horizon Technology Finance | Gladstone Investment vs. Stellus Capital Investment | Gladstone Investment vs. Prospect Capital |
| Eaton Vance vs. Munivest Fund | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniholdings Closed |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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