Correlation Between Calvert Equity and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Calvert Equity 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 Calvert Equity and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Equity Portfolio and Eaton Vance Atlanta, you can compare the effects of market volatilities on Calvert Equity 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 Calvert Equity with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Equity and Eaton Vance.
Diversification Opportunities for Calvert Equity and Eaton Vance
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Eaton is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Equity Portfolio and Eaton Vance Atlanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Atlanta and Calvert Equity 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 Calvert Equity Portfolio 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 Atlanta has no effect on the direction of Calvert Equity i.e., Calvert Equity and Eaton Vance go up and down completely randomly.
Pair Corralation between Calvert Equity and Eaton Vance
Assuming the 90 days horizon Calvert Equity is expected to generate 1.7 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Calvert Equity Portfolio is 1.46 times less risky than Eaton Vance. It trades about 0.17 of its potential returns per unit of risk. Eaton Vance Atlanta is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,714 in Eaton Vance Atlanta on August 30, 2024 and sell it today you would earn a total of 168.00 from holding Eaton Vance Atlanta or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Equity Portfolio vs. Eaton Vance Atlanta
Performance |
| Timeline |
| Calvert Equity Portfolio |
| Eaton Vance Atlanta |
Calvert Equity and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Equity and Eaton Vance
The main advantage of trading using opposite Calvert Equity and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Equity 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.| Calvert Equity vs. Calvert Bond Portfolio | Calvert Equity vs. Calvert International Equity | Calvert Equity vs. Calvert Capital Accumulation | Calvert Equity vs. Calvert Balanced Portfolio |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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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