Correlation Between Nuveen Preferred and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Preferred 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 Preferred 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 Preferred and and Eaton Vance National, you can compare the effects of market volatilities on Nuveen Preferred 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 Preferred with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Preferred and Eaton Vance.
Diversification Opportunities for Nuveen Preferred and Eaton Vance
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nuveen and Eaton is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Preferred and and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Nuveen Preferred 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 Preferred and 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 National has no effect on the direction of Nuveen Preferred i.e., Nuveen Preferred and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Preferred and Eaton Vance
Considering the 90-day investment horizon Nuveen Preferred and is expected to generate 1.07 times more return on investment than Eaton Vance. However, Nuveen Preferred is 1.07 times more volatile than Eaton Vance National. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance National is currently generating about 0.08 per unit of risk. If you would invest 1,658 in Nuveen Preferred and on August 31, 2024 and sell it today you would earn a total of 368.00 from holding Nuveen Preferred and or generate 22.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Preferred and vs. Eaton Vance National
Performance |
| Timeline |
| Nuveen Preferred |
| Eaton Vance National |
Nuveen Preferred and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Preferred and Eaton Vance
The main advantage of trading using opposite Nuveen Preferred and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Preferred 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 Preferred vs. Eaton Vance National | Nuveen Preferred vs. Invesco High Income | Nuveen Preferred vs. Blackrock Muniholdings Ny | Nuveen Preferred vs. Nuveen California Select |
| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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