Correlation Between Nuveen SP and Eaton Vance

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Can any of the company-specific risk be diversified away by investing in both Nuveen SP 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 SP 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 SP 500 and Eaton Vance Tax, you can compare the effects of market volatilities on Nuveen SP 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 SP with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen SP and Eaton Vance.

Diversification Opportunities for Nuveen SP and Eaton Vance

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Nuveen and Eaton is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen SP 500 and Eaton Vance Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and Nuveen SP 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 SP 500 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 Tax has no effect on the direction of Nuveen SP i.e., Nuveen SP and Eaton Vance go up and down completely randomly.

Pair Corralation between Nuveen SP and Eaton Vance

Given the investment horizon of 90 days Nuveen SP 500 is expected to generate 0.9 times more return on investment than Eaton Vance. However, Nuveen SP 500 is 1.11 times less risky than Eaton Vance. It trades about 0.09 of its potential returns per unit of risk. Eaton Vance Tax is currently generating about 0.07 per unit of risk. If you would invest  1,412  in Nuveen SP 500 on September 1, 2024 and sell it today you would earn a total of  352.00  from holding Nuveen SP 500 or generate 24.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.73%
ValuesDaily Returns

Nuveen SP 500  vs.  Eaton Vance Tax

 Performance 
       Timeline  
Nuveen SP 500 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen SP 500 are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Nuveen SP may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Eaton Vance Tax 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly sluggish basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Nuveen SP and Eaton Vance Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nuveen SP and Eaton Vance

The main advantage of trading using opposite Nuveen SP and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen SP 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.
The idea behind Nuveen SP 500 and Eaton Vance Tax pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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