Correlation Between Eaton Vance and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Nuveen Preferred 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 Eaton Vance and Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Risk and Nuveen Preferred Securites, you can compare the effects of market volatilities on Eaton Vance and Nuveen Preferred 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 Eaton Vance with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Nuveen Preferred.
Diversification Opportunities for Eaton Vance and Nuveen Preferred
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Nuveen Preferred Securites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred Sec and Eaton Vance 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 Eaton Vance Risk are associated (or correlated) with Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred Sec has no effect on the direction of Eaton Vance i.e., Eaton Vance and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Eaton Vance and Nuveen Preferred
If you would invest (100.00) in Nuveen Preferred Securites on December 2, 2024 and sell it today you would earn a total of 100.00 from holding Nuveen Preferred Securites or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Eaton Vance Risk vs. Nuveen Preferred Securites
Performance |
Timeline |
Eaton Vance Risk |
Nuveen Preferred Sec |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eaton Vance and Nuveen Preferred Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Nuveen Preferred
The main advantage of trading using opposite Eaton Vance and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Nuveen Preferred 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 Nuveen Preferred will offset losses from the drop in Nuveen Preferred's long position.Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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