Correlation Between Nuveen Senior and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nuveen Senior 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 Senior 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 Senior Income and Eaton Vance Senior, you can compare the effects of market volatilities on Nuveen Senior 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 Senior with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Senior and Eaton Vance.
Diversification Opportunities for Nuveen Senior and Eaton Vance
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Eaton is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Senior Income 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 Nuveen Senior 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 Senior Income 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 Nuveen Senior i.e., Nuveen Senior and Eaton Vance go up and down completely randomly.
Pair Corralation between Nuveen Senior and Eaton Vance
Considering the 90-day investment horizon Nuveen Senior is expected to generate 5.75 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Nuveen Senior Income is 1.65 times less risky than Eaton Vance. It trades about 0.02 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Eaton Vance Senior on August 24, 2024 and sell it today you would earn a total of 188.00 from holding Eaton Vance Senior or generate 43.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Nuveen Senior Income vs. Eaton Vance Senior
Performance |
| Timeline |
| Nuveen Senior Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eaton Vance Senior |
Nuveen Senior and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Senior and Eaton Vance
The main advantage of trading using opposite Nuveen Senior and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Senior 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 Senior vs. Nuveen Floating Rate | Nuveen Senior vs. Pioneer Floating Rate | Nuveen Senior vs. BlackRock Floating Rate | Nuveen Senior vs. Blackrock Floating Rate |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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