Correlation Between Nuveen Municipal and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Municipal 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 Municipal 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 Municipal High and Eaton Vance New, you can compare the effects of market volatilities on Nuveen Municipal 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 Municipal with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Municipal and Eaton Vance.
Diversification Opportunities for Nuveen Municipal and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuveen and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Municipal High 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 Municipal 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 Municipal High 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 Municipal i.e., Nuveen Municipal and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Municipal and Eaton Vance
If you would invest 1,098 in Nuveen Municipal High on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Nuveen Municipal High or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nuveen Municipal High vs. Eaton Vance New
Performance |
| Timeline |
| Nuveen Municipal High |
| Eaton Vance New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Municipal and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Municipal and Eaton Vance
The main advantage of trading using opposite Nuveen Municipal and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Municipal 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 Municipal vs. Western Asset Managed | Nuveen Municipal vs. Blackrock Muniholdings Quality | Nuveen Municipal vs. DTF Tax Free | Nuveen Municipal vs. John Hancock Income |
| Eaton Vance vs. Nuveen Municipalome | Eaton Vance vs. Platinum Asia Investments | Eaton Vance vs. Eaton Vance New | Eaton Vance vs. Nuveen New York |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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