Correlation Between Omni Small-cap and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Omni Small-cap 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 Omni Small-cap and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omni Small Cap Value and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Omni Small-cap 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 Omni Small-cap with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omni Small-cap and Eaton Vance.
Diversification Opportunities for Omni Small-cap and Eaton Vance
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Omni and Eaton is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Omni Small Cap Value 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 Omni Small-cap 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 Omni Small Cap Value 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 Omni Small-cap i.e., Omni Small-cap and Eaton Vance go up and down completely randomly.
Pair Corralation between Omni Small-cap and Eaton Vance
Assuming the 90 days horizon Omni Small Cap Value is expected to under-perform the Eaton Vance. In addition to that, Omni Small-cap is 7.2 times more volatile than Eaton Vance Floating Rate. It trades about -0.27 of its total potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.1 per unit of volatility. If you would invest 996.00 in Eaton Vance Floating Rate on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Eaton Vance Floating Rate or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omni Small Cap Value vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Omni Small Cap |
| Eaton Vance Floating |
Omni Small-cap and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omni Small-cap and Eaton Vance
The main advantage of trading using opposite Omni Small-cap and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Small-cap 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.| Omni Small-cap vs. Aggressive Investors 1 | Omni Small-cap vs. Ultra Small Pany Market | Omni Small-cap vs. Small Cap Value Fund | Omni Small-cap vs. Ultra Small Pany Fund |
| Eaton Vance vs. Virtus Seix Government | Eaton Vance vs. Aig Government Money | Eaton Vance vs. Inverse Government Long | Eaton Vance vs. Transamerica Funds |
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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