Correlation Between MFS High and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both MFS 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 MFS 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 MFS High Income and Eaton Vance Senior, you can compare the effects of market volatilities on MFS 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 MFS High with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS High and Eaton Vance.
Diversification Opportunities for MFS High and Eaton Vance
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MFS and Eaton is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MFS High Income and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and MFS 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 MFS 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 Senior has no effect on the direction of MFS High i.e., MFS High and Eaton Vance go up and down completely randomly.
Pair Corralation between MFS High and Eaton Vance
Considering the 90-day investment horizon MFS High is expected to generate 1.22 times less return on investment than Eaton Vance. In addition to that, MFS High is 1.38 times more volatile than Eaton Vance Senior. It trades about 0.12 of its total potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.2 per unit of volatility. If you would invest 617.00 in Eaton Vance Senior on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Eaton Vance Senior or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS High Income vs. Eaton Vance Senior
Performance |
| Timeline |
| MFS High Income |
| Eaton Vance Senior |
MFS High and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS High and Eaton Vance
The main advantage of trading using opposite MFS High and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS 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.| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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