Correlation Between Gabelli Utility and Eaton Vance

Can any of the company-specific risk be diversified away by investing in both Gabelli Utility 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 Gabelli Utility and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gabelli Utility Closed and Eaton Vance National, you can compare the effects of market volatilities on Gabelli Utility 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 Gabelli Utility with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utility and Eaton Vance.

Diversification Opportunities for Gabelli Utility and Eaton Vance

0.54

Correlation Coefficient

Gabelli Utility  Eaton Vance

Very weak diversification

The 3 months correlation between Gabelli and Eaton is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Utility Closed and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Gabelli Utility 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 Gabelli Utility Closed 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 National has no effect on the direction of Gabelli Utility i.e., Gabelli Utility and Eaton Vance go up and down completely randomly.

Pair Corralation between Gabelli Utility and Eaton Vance

Considering the 90-day investment horizon Gabelli Utility Closed is expected to generate 1.66 times more return on investment than Eaton Vance. However, Gabelli Utility is 1.66 times more volatile than Eaton Vance National. It trades about 0.14 of its potential returns per unit of risk. Eaton Vance National is currently generating about 0.06 per unit of risk. If you would invest  498.00  in Gabelli Utility Closed on December 28, 2024 and sell it today you would earn a total of  41.00  from holding Gabelli Utility Closed or generate 8.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Gabelli Utility Closed  vs.  Eaton Vance National

Gabelli Utility Closed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Utility Closed are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively abnormal basic indicators, Gabelli Utility may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Eaton Vance National

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance National are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Gabelli Utility and Eaton Vance

The main advantage of trading using opposite Gabelli Utility and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utility 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 Gabelli Utility Closed and Eaton Vance National 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..