Correlation Between Nuveen Mortgage and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Mortgage 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 Mortgage 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 Mortgage Opportunity and Eaton Vance New, you can compare the effects of market volatilities on Nuveen Mortgage 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 Mortgage with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Mortgage and Eaton Vance.
Diversification Opportunities for Nuveen Mortgage and Eaton Vance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuveen and Eaton is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Mortgage Opportunity and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New and Nuveen Mortgage 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 Mortgage Opportunity 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 New has no effect on the direction of Nuveen Mortgage i.e., Nuveen Mortgage and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Mortgage and Eaton Vance
Considering the 90-day investment horizon Nuveen Mortgage Opportunity is expected to generate 0.88 times more return on investment than Eaton Vance. However, Nuveen Mortgage Opportunity is 1.14 times less risky than Eaton Vance. It trades about 0.12 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.02 per unit of risk. If you would invest 1,623 in Nuveen Mortgage Opportunity on August 27, 2024 and sell it today you would earn a total of 199.00 from holding Nuveen Mortgage Opportunity or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Mortgage Opportunity vs. Eaton Vance New
Performance |
| Timeline |
| Nuveen Mortgage Oppo |
| Eaton Vance New |
Nuveen Mortgage and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Mortgage and Eaton Vance
The main advantage of trading using opposite Nuveen Mortgage and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Mortgage 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 Mortgage vs. Western Asset High | Nuveen Mortgage vs. Pioneer Municipal High | Nuveen Mortgage vs. The Gabelli Equity | Nuveen Mortgage vs. Eaton Vance National |
| Eaton Vance vs. Nuveen Amt Free Municipal | Eaton Vance vs. Nuveen Municipalome | Eaton Vance vs. Pimco New York | Eaton Vance vs. Blackrock Muniholdings Ny |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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