Correlation Between Alliancebernstein and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein 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 Alliancebernstein and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein National Municipal and Eaton Vance Short, you can compare the effects of market volatilities on Alliancebernstein 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 Alliancebernstein with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Eaton Vance.
Diversification Opportunities for Alliancebernstein and Eaton Vance
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alliancebernstein and Eaton is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and Alliancebernstein 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 Alliancebernstein National Municipal 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 Short has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Eaton Vance go up and down completely randomly.
Pair Corralation between Alliancebernstein and Eaton Vance
Considering the 90-day investment horizon Alliancebernstein National Municipal is expected to generate 1.14 times more return on investment than Eaton Vance. However, Alliancebernstein is 1.14 times more volatile than Eaton Vance Short. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance Short is currently generating about -0.03 per unit of risk. If you would invest 1,119 in Alliancebernstein National Municipal on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Alliancebernstein National Municipal or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Eaton Vance Short
Performance |
| Timeline |
| Alliancebernstein |
| Eaton Vance Short |
Alliancebernstein and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Eaton Vance
The main advantage of trading using opposite Alliancebernstein and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein 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.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Eaton Vance vs. RiverNorth Flexible Municipalome | Eaton Vance vs. DWS Municipal Income | Eaton Vance vs. Blackrock Munivest | Eaton Vance vs. MFS Municipal Income |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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