Correlation Between MFS Investment and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both MFS Investment 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 Investment 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 Investment Grade and Eaton Vance Municipal, you can compare the effects of market volatilities on MFS Investment 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 Investment with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and Eaton Vance.
Diversification Opportunities for MFS Investment and Eaton Vance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MFS and Eaton is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and MFS Investment 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 Investment Grade 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 Municipal has no effect on the direction of MFS Investment i.e., MFS Investment and Eaton Vance go up and down completely randomly.
Pair Corralation between MFS Investment and Eaton Vance
Considering the 90-day investment horizon MFS Investment Grade is expected to generate 1.1 times more return on investment than Eaton Vance. However, MFS Investment is 1.1 times more volatile than Eaton Vance Municipal. It trades about 0.11 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about -0.15 per unit of risk. If you would invest 803.00 in MFS Investment Grade on August 28, 2024 and sell it today you would earn a total of 10.00 from holding MFS Investment Grade or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MFS Investment Grade vs. Eaton Vance Municipal
Performance |
| Timeline |
| MFS Investment Grade |
| Eaton Vance Municipal |
MFS Investment and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and Eaton Vance
The main advantage of trading using opposite MFS Investment and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment 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 Investment vs. PowerUp Acquisition Corp | MFS Investment vs. Aurora Innovation | MFS Investment vs. HUMANA INC | MFS Investment vs. Aquagold International |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Federated Premier Municipal | 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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