Correlation Between Dunham High and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Dunham 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 Dunham 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 Dunham High Yield and Eaton Vance Small Cap, you can compare the effects of market volatilities on Dunham 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 Dunham High with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Eaton Vance.
Diversification Opportunities for Dunham High and Eaton Vance
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dunham and Eaton is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Eaton Vance Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Small and Dunham 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 Dunham High Yield 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 Small has no effect on the direction of Dunham High i.e., Dunham High and Eaton Vance go up and down completely randomly.
Pair Corralation between Dunham High and Eaton Vance
Assuming the 90 days horizon Dunham High is expected to generate 1.82 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Dunham High Yield is 5.48 times less risky than Eaton Vance. It trades about 0.17 of its potential returns per unit of risk. Eaton Vance Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,297 in Eaton Vance Small Cap on November 9, 2024 and sell it today you would earn a total of 193.00 from holding Eaton Vance Small Cap or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Eaton Vance Small Cap
Performance |
| Timeline |
| Dunham High Yield |
| Eaton Vance Small |
Dunham High and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Eaton Vance
The main advantage of trading using opposite Dunham High and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham 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.| Dunham High vs. Science Technology Fund | Dunham High vs. Invesco Technology Fund | Dunham High vs. Red Oak Technology | Dunham High vs. Columbia Global Technology |
| Eaton Vance vs. T Rowe Price | Eaton Vance vs. Bbh Partner Fund | Eaton Vance vs. Auxier Focus Fund | Eaton Vance vs. Touchstone Funds Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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