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 Global High and Eaton Vance Floating Rate, 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
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Eaton is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein Global High and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating 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 Global High 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 Floating 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 Global High is expected to generate 3.49 times more return on investment than Eaton Vance. However, Alliancebernstein is 3.49 times more volatile than Eaton Vance Floating Rate. It trades about 0.09 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.22 per unit of risk. If you would invest 805.00 in Alliancebernstein Global High on September 12, 2024 and sell it today you would earn a total of 282.00 from holding Alliancebernstein Global High or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliancebernstein Global High vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Alliancebernstein |
| Eaton Vance Floating |
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. Oxford Lane Capital | Alliancebernstein vs. Orchid Island Capital | Alliancebernstein vs. Guggenheim Strategic Opportunities | Alliancebernstein vs. Stone Harbor Emerging |
| Eaton Vance vs. Dreyfus Technology Growth | Eaton Vance vs. Fidelity Advisor Technology | Eaton Vance vs. Technology Ultrasector Profund | Eaton Vance vs. Mfs Technology Fund |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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