Correlation Between Ab High and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Ab High 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 Ab High and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Eaton Vance Municipal, you can compare the effects of market volatilities on Ab High 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 Ab High with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Eaton Vance.
Diversification Opportunities for Ab High and Eaton Vance
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AGDAX and Eaton is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and Ab High 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 Ab High Income 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 Municipal has no effect on the direction of Ab High i.e., Ab High and Eaton Vance go up and down completely randomly.
Pair Corralation between Ab High and Eaton Vance
Assuming the 90 days horizon Ab High is expected to generate 2.35 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Ab High Income is 2.15 times less risky than Eaton Vance. It trades about 0.18 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Eaton Vance Municipal on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Eaton Vance Municipal or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab High Income vs. Eaton Vance Municipal
Performance |
| Timeline |
| Ab High Income |
| Eaton Vance Municipal |
Ab High and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Eaton Vance
The main advantage of trading using opposite Ab High and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High 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.| Ab High vs. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Minnesota Portfolio |
| Eaton Vance vs. Aqr Risk Balanced Modities | Eaton Vance vs. Ab High Income | Eaton Vance vs. Artisan High Income | Eaton Vance vs. Ab Global Risk |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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