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
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GAMCO and Eaton is -0.01. 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 Resources is expected to generate 1.71 times more return on investment than Eaton Vance. However, GAMCO Natural is 1.71 times more volatile than Eaton Vance Senior. It trades about 0.08 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.05 per unit of risk. If you would invest 530.00 in GAMCO Natural Resources on August 30, 2024 and sell it today you would earn a total of 52.00 from holding GAMCO Natural Resources or generate 9.81% 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. Invesco High Income | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Federated Premier Municipal |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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