Correlation Between CBH and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both CBH 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 CBH and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Eaton Vance Tax, you can compare the effects of market volatilities on CBH 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 CBH with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Eaton Vance.
Diversification Opportunities for CBH and Eaton Vance
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CBH and Eaton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Eaton Vance Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and CBH 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 CBH 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 Tax has no effect on the direction of CBH i.e., CBH and Eaton Vance go up and down completely randomly.
Pair Corralation between CBH and Eaton Vance
Considering the 90-day investment horizon CBH is expected to generate 5.11 times more return on investment than Eaton Vance. However, CBH is 5.11 times more volatile than Eaton Vance Tax. It trades about 0.06 of its potential returns per unit of risk. Eaton Vance Tax is currently generating about 0.05 per unit of risk. If you would invest 772.00 in CBH on August 24, 2024 and sell it today you would earn a total of 985.00 from holding CBH or generate 127.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 88.31% |
| Values | Daily Returns |
CBH vs. Eaton Vance Tax
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Eaton Vance Tax |
CBH and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Eaton Vance
The main advantage of trading using opposite CBH and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH 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.| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Munivest 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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