Correlation Between Eaton Vance and Spring Valley

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

By analyzing existing cross correlation between Eaton Vance Municipal and Spring Valley Acquisition, you can compare the effects of market volatilities on Eaton Vance and Spring Valley 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 Spring Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Spring Valley.

Diversification Opportunities for Eaton Vance and Spring Valley

0.72

Correlation Coefficient

Eaton Vance  Spring Valley

Poor diversification

The 3 months correlation between Eaton and Spring is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Spring Valley Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spring Valley Acquisition 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 Municipal are associated (or correlated) with Spring Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spring Valley Acquisition has no effect on the direction of Eaton Vance i.e., Eaton Vance and Spring Valley go up and down completely randomly.

Pair Corralation between Eaton Vance and Spring Valley

Considering the 90-day investment horizon Eaton Vance Municipal is expected to generate 0.52 times more return on investment than Spring Valley. However, Eaton Vance Municipal is 1.93 times less risky than Spring Valley. It trades about 0.17 of its potential returns per unit of risk. Spring Valley Acquisition is currently generating about 0.04 per unit of risk. If you would invest  1,787  in Eaton Vance Municipal on July 12, 2025 and sell it today you would earn a total of  125.00  from holding Eaton Vance Municipal or generate 6.99% return on investment over 90 days.

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

Eaton Vance Municipal  vs.  Spring Valley Acquisition

Eaton Vance Municipal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Municipal are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Spring Valley Acquisition

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Spring Valley Acquisition are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Spring Valley is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Eaton Vance and Spring Valley

The main advantage of trading using opposite Eaton Vance and Spring Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Spring Valley 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 Spring Valley will offset losses from the drop in Spring Valley's long position.

The idea behind Eaton Vance Municipal and Spring Valley Acquisition 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.