Correlation Between Nuveen Credit and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Credit 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 Credit 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 Credit Strategies and Eaton Vance Floating, you can compare the effects of market volatilities on Nuveen Credit 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 Credit with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Credit and Eaton Vance.
Diversification Opportunities for Nuveen Credit and Eaton Vance
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Eaton is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Credit Strategies and Eaton Vance Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Nuveen Credit 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 Credit Strategies 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 Floating has no effect on the direction of Nuveen Credit i.e., Nuveen Credit and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Credit and Eaton Vance
Considering the 90-day investment horizon Nuveen Credit Strategies is expected to generate 1.11 times more return on investment than Eaton Vance. However, Nuveen Credit is 1.11 times more volatile than Eaton Vance Floating. It trades about 0.13 of its potential returns per unit of risk. Eaton Vance Floating is currently generating about 0.14 per unit of risk. If you would invest 414.00 in Nuveen Credit Strategies on August 31, 2024 and sell it today you would earn a total of 166.00 from holding Nuveen Credit Strategies or generate 40.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Nuveen Credit Strategies vs. Eaton Vance Floating
Performance |
| Timeline |
| Nuveen Credit Strategies |
| Eaton Vance Floating |
Nuveen Credit and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Credit and Eaton Vance
The main advantage of trading using opposite Nuveen Credit and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Credit 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 Credit vs. MFS Investment Grade | Nuveen Credit vs. Eaton Vance Municipal | Nuveen Credit vs. DTF Tax Free | Nuveen Credit vs. HUMANA INC |
| Eaton Vance vs. NXG NextGen Infrastructure | Eaton Vance vs. GAMCO Natural Resources | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Calamos Global Dynamic |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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