Correlation Between GAMCO Natural and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural 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 GAMCO Natural and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Natural Resources and Eaton Vance Senior, you can compare the effects of market volatilities on GAMCO Natural 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 GAMCO Natural with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and Eaton Vance.
Diversification Opportunities for GAMCO Natural and Eaton Vance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMCO and Eaton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and GAMCO Natural 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 GAMCO Natural Resources 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 Senior has no effect on the direction of GAMCO Natural i.e., GAMCO Natural and Eaton Vance go up and down completely randomly.
Pair Corralation between GAMCO Natural and Eaton Vance
Considering the 90-day investment horizon GAMCO Natural is expected to generate 1.04 times less return on investment than Eaton Vance. In addition to that, GAMCO Natural is 2.4 times more volatile than Eaton Vance Senior. It trades about 0.07 of its total potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.17 per unit of volatility. If you would invest 1,245 in Eaton Vance Senior on September 12, 2024 and sell it today you would earn a total of 59.00 from holding Eaton Vance Senior or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Natural Resources vs. Eaton Vance Senior
Performance |
| Timeline |
| GAMCO Natural Resources |
| Eaton Vance Senior |
GAMCO Natural and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and Eaton Vance
The main advantage of trading using opposite GAMCO Natural and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural 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.| GAMCO Natural vs. MFS Investment Grade | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Federated Premier Municipal | GAMCO Natural vs. Gabelli Healthcare WellnessRx |
| Eaton Vance vs. Blackrock Floating Rate | Eaton Vance vs. Pioneer Floating Rate | Eaton Vance vs. Eaton Vance Senior | Eaton Vance vs. Blackrock Debt Strategies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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